Bitcoin (BTC) experienced a brief dip, retracing to $48,472.
Bitcoin remains bullish, targeting $51,500.
Bitcoin (BTC), after hitting a high near the $50,400 mark, displayed a slight downturn, testing the $48,406 level. However, the largest crypto is currently striving to surpass the $50,000 mark again amidst a backdrop of what analysts are terming a “golden bull phase” in the market.
Despite the prolonged setback, Bitcoin managed to surge above the $48,500 resistance level, briefly breaching the $50,000 threshold before encountering resistance. A new multi-week high near $50,300 was reached before a corrective move ensued, which was the highest level since January 2022.
What’s Next for Bitcoin (BTC)?
The recent slight pullback in Bitcoin’s price coincided with the release of January’s consumer price index (CPI) data by the US Bureau of Labor Statistics. The CPI stood at 3.1%, surpassing expectations of 2.9%, prompting a sharp correction across financial markets. Wall Street’s S&P 500 Index witnessed a 1.37% drop, marking its worst CPI-day performance since September 2022.
Also, the global crypto market declined around 0.36%, with Bitcoin retracing to $48,472. However, currently, Bitcoin is trading above $49,550 and the 100-hourly simple moving average, with a key bullish trend line forming around the $49,750 resistance level on the hourly chart of the BTC/USD pair.
Bitcoin (BTC) Price Chart (Source: TradingView)
The immediate resistance is anticipated near the $49,900 level. If BTC successfully breaches the $50,000, it could initiate another significant uptick, with potential targets at $50,400 and beyond.
Conversely, if BTC fails to surpass $50,000, it might trigger another downward correction, with initial support at $49,200. Further downside could see Bitcoin testing support levels around $48,700, with a close below $48,400 potentially indicating increased bearish momentum and a downside target around $47,950.