Bitcoin (BTC), the biggest cryptocurrency by market cap, might be facing a critical situation as it struggles to reclaim the $52,000 level.
According to crypto analyst Ali, if BTC fails to break above this level soon, it could trigger an 8% correction that could send its price down to $48,000 or lower at $46,500.
According to data from TradingView, BTC has been trading in a narrow range for the past few days, since hitting highs of $52,890 on Feb. 15.
If #Bitcoin fails to quickly reclaim the $52,000 level, it might face an 8% correction, potentially dropping to between $48,000 and $46,500. At this price range, over 1 million addresses hold more than 544,870 $BTC, indicating significant support. pic.twitter.com/dY7zIqLKN2
— Ali (@ali_charts) February 17, 2024
According to Ali, if Bitcoin fails to quickly reclaim the $52,000 level, it could trigger a wave of selling pressure that could push its price down to the next support zone at $48,500 or even to $46,500. This price range represents a strong demand zone, as over 1 million addresses bought more than 544,870 BTC, indicating significant support.
At the time of writing, BTC was trading down 0.06% at $51,736.
Catalysts that might impact BTC price
On-chain analytics firm IntoTheBlock, in a recent analysis, presents key factors that might impact the BTC price in the days ahead.
The Bitcoin price is currently 24.78% away from its all-time high of $69,000 set in November 2021, however, bullish catalysts continue to line up.
According to IntoTheBlock, big catalysts on the horizon that might propel BTC to all-time highs before the summer include halving, ETFs and easing.
The Bitcoin halving is scheduled to take place in mid-April 2024. In it, the amount of rewards granted to miners per block is halved from 6.25 BTC to 3.125 BTC. In terms of Bitcoin\'s price, a swift recovery in the hash rate would help ensure the security of the Bitcoin blockchain and hence positively impact the price.
Another catalyst for Bitcoin is likely to be the continuation of inflows coming from spot ETFs. Just a month after their inception, the Bitcoin ETF products have seen over $4 billion in new inflows.
This could result in increased demand for Bitcoin while supply issuance decreases following the halving, creating a potentially explosive dynamic for Bitcoin\'s price.