After gains that have seen Bitcoin (BTC) briefly surpass the $44,000 threshold recently, investors might be looking at a potential price correction soon that can be damaging in the short term. However, a correction can be positive, adjusting overvalued asset prices and providing buying opportunities.
Technical analysts examine price support and resistance levels to anticipate transitioning from a reversal or consolidation to a correction. Technical corrections occur when there is excessive inflation in an asset or the overall market.
According to the analysis of the daily and the three-day charts of the Bitcoin price movement, the following BTC price correction might be coming within the next 48 hours, as per a post on X by cryptocurrency analyst Ali Martinez on December 5.
BTC price one-day and three-day charts. Source: Ali Martinez
Investors might be wondering to which level Bitcoin will drop during this retracement, and based on another analysis by Martinez on December 4, the support area for Bitcoin stands at $37,000, while the resistance zone is $47,360.
BTC resistance and support zone. Source: Ali Martinez
Bitcoin price analysis
At the time of press, BTC is trading at $43,854, representing a gain in price of 5.37% in the previous 24 hours. This digital asset has gained 14.86% in the last 7 days and added 25.60% in the past 30 months.
BTC 24-hour price chart. Source: Finbold
This cryptocurrency has experienced an increase of 158% in the last year, allowing it to outperform 82% of the top 100 crypto assets in this period.
Additionally, this digital asset trades above the 200-day simple moving average while having 18 green days in the last 30 days.
Considering everything, the future movement of Bitcoin price will depend on various factors. Protocol development, network decentralization, adoption, and macroeconomic conditions will all significantly shape its trajectory.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
