Bitcoin’s recent decline has sparked concern in the crypto market. However, one analyst believes that the current situation is just a correction phase and not a long-term bearish trend. According to Ali Charts, Bitcoin has established a strong support zone between $37,150 and $38,360, which is backed by significant accumulation from approximately 1.52 million addresses. This accumulation could prevent further declines in Bitcoin’s value.
Despite the potential for recovery and continued growth, there are two key resistance levels at $43,850 and $46,400 that could challenge Bitcoin’s upward momentum. These levels represent thresholds where selling pressure may intensify and hinder Bitcoin from reclaiming its recent highs.
In the past 24 hours, Bitcoin’s price has dipped by 0.3% to trading below $42,000, indicating a retreat from the $44,000 mark. This decrease in value is also reflected in the decreased trading volume, suggesting a cooling-off period after the recent market rally.
While some may be concerned about Bitcoin’s price fluctuations, experts like William Clemente suggest that this pullback is necessary for “shaking out weak hands” and reducing leverage in the market to establish a stronger foundation for future growth. Clemente views Bitcoin’s volatility as a feature rather than a bug.
It is important to note that this article is for educational purposes only and does not represent the opinions of NewsBTC on investment decisions. It is always advised to conduct thorough research before making any investments.