Bitcoin Price Prediction: BTC dropping following rejection at $48K
3 min readTL;DR breakdown
- BTC/USD is correcting gains below $46,000 and $45,000
- Bitcoin price seeks support at $43,000 following rejection at its all-time high ($48K)
- BTC decline largely coincided with decline in BTC dominance index
Bitcoin Price Prediction: General price overview
Bitcoin price has every right to rally upwards following the recent events ranging from Tesla investing $1.5 billion of its cash reserves in Bitcoin; and social media giants Twitter exploiting its chances of holding the flagship cryptocurrency. Even so, Bitcoin price is instead going down following a rejection at its new all-time high price of $48,000. The world’s most popular crypto corrected sharply below the $46,000 and $45,000 support levels.
As of today, the BTC/USD pair is down by about 3 percent over the last 24 hours and trading at a market price of $45,023 at the time of writing. So far Bitcoin has reached a daily low of $43,994.02 and a daily high of $45,129.59 and boasts a 24 hour trading volume of $85.2 billion.
Bitcoin is notorious for recording sharp corrections immediately after a parabolic rally. In most cases, investors and traders tend to shift their capital from Bitcoin and put it in oversold altcoins, resulting in what is popularly known as the ‘altseason’. After altcoins reach new record levels, the traders go back to the Bitcoin market and renew the bullish outlook.
Bitcoin Price Prediction: BTC/USD 4-hour chart
Bitcoin’s recent rally came as a surprise to many following the ‘Elon Pump’ which drove BTC to a new all-time high at $48,000. Meanwhile, the world’s largest cryptocurrency has corrected gains and trading below the $46,000 support line. If staying above $40,000 price levels prove to be an uphill task, the flagship cryptocurrency may even retrace to lower levels.
The $38,000 price level proved to be a formidable hurdle during the latest rally from a low of $30,000. Regardless, the bulls managed to convert it into a herculean support capable of absorbing all the selling pressure and preventing further losses. Looking at the MACD indicates that the direction bearing the minimal defiance is down. When applied correctly, the Moving Average Convergence Divergence (MACD) indicator can pinpoint the entry and exit points. At the moment, the blue line has moved below the red one which suggests it is not wise to enter the market at this point, or maybe it is time to exit.
The downside correction is expected to continue in the short term although we are not certain how far it will go. However, Bitcoin price is currently consolidating above $44,000 and could attempt a new rally towards a new all-time high at $51,000. For the Bitcoin price action to move into a positive zone, the bulls must push it above the $46,000 key level.
Bitcoin Price Prediction: Conclusion
Bitcoin’s latest retracement coincides with a decline in the Bitcoin Dominance index. The key metric computes Bitcoin’s market share against other digital assets with massive market capitalization such as Ethereum, Binance Coin, Ripple’s XRP and ADA. Back on February 9, the BTC dominance index stood at 64.7 percent and today the index reads 61.4 percent. The reason behind this decline can be explained by the surge in the altcoins market over the last week. For instance, ADA gained by over 20 against BTC, and AVAX was the best performer surging by more than 100 percent.
