Bitcoin begins correction after $45K rejection – Where can BTC price bounce next?

Bitcoin begins correction after $45K rejection - Where can BTC price bounce next?

As a long-awaited correction took the stage on Feb. 8, Bitcoin (BTC) handed back $2,500 of its newly-won gains.

BTC Chart
BTC Chart

Hopes $42,000 will be preserved

BTC/USD was nearing $43,000, according to data from Cointelegraph Markets Pro and TradingView, after touching new multi-week highs of $45,500. At the start of the trading day on Wall Street, range continued as bulls looked for potential support levels in the case of further losses. These previously featured both $40,000 and $41,000, as well as other zones in the upper $30,000–$40,000 range. Muro, a renowned Twitter trader, required $42,000 to become significant as an intermediate floor in order to turn sentiment optimistic. “Either we don’t have much of a pullback and go to 51 next,” he said at the end of the day. “Alternatively, I wouldn’t be surprised if this fully retraced. I’m modestly bullish as long as 42 holds.” An accompanying graphic showed that a drop to roughly $38,000 would likely be an appealing buy-in for investors, but that this would not be conducive to future market strength in and of itself.

BTC Chart 2
BTC Chart

Meanwhile, Bitcoin is encountering “crucial” resistance, according to Cointelegraph contributor Michal van de Poppe. “I’m assuming we won’t break all at once and have a correction -> ending up terrible for altcoins,” he cautioned Twitter followers. As of this writing, $43,000 was undergoing a series of retests as Wall Street trading failed to generate new upside.

400 days of consolidation and counting

Those zooming out were calmer, chalking up current price movement to part of a consolidation phase that has been in place for over 400 days. “In my opinion, Bitcoin has been in a bull market and consolidating sideways for more than a year; there have been no bad markets, imo, it is all consolidation,” market commentator Miles Johal said alongside a chart depicting the structure. “When the range is broken, the following move will be huge; after all, this is Bitcoin.”

BTC Chart 3
BTC Chart