• Bitcoin price retests a tough resistance level at $52,062.
  • A lack of momentum is likely to trigger a correction and consolidation for the next few weeks.
  • Investors can expect BTC to remain between the $52,062 to $45,156 levels. 
  • Bounce at the lower end of the potential range could see a revisit of the $58,399 weekly resistance level.

Bitcoin (BTC) price has been moving up only since January 22 but could slip into a consolidation before the next leg up. With the rate at which BTC is climbing after the ETF approval, coupled with strong fundamentals, investors should consider buying the dips before BTC hits $60,000.

Also read: Bitcoin Weekly Forecast: BTC targets $52,000, will New Moon trigger a pullback first?

Bitcoin price likely to slow down

Bitcoin price rallied 68% between October 9, 2023, and December 4, 2023, following which it consolidated for seven weeks. In the eighth week, it triggered a breakout, rallying 25% and setting up a local top at $52,879. 

The second leg has pushed BTC to sweep the weekly resistance level at $52,065, collecting the buy-stop liquidity there. If this weekly candlestick closes below the said resistance level, the chances of consolidation will increase heavily. 

Assuming Bitcoin price slips below $52,065, it is likely to slide lower and tag the $45,156, a weekly support level. This development is supported by the potential bearish divergence discussed in the previous publication. Once the lower and upper limits are set, BTC will likely trade within the range, looking for a sweep of the range low before triggering an upswing. 

The upside target for Bitcoin price includes the next weekly resistance level at $58,399. However, it is unlikely BTC will stop at this level, a quick extension higher could see the pioneer crypto revisit the $60,000 psychological level after more than two years.

The euphoria, coupled with the retail FOMO for hitting $60,000 could be enough to propel Bitcoin price to retest and overcome the all-time high of $69,138. 

Read more: Week Ahead: Bitcoin inches closer to $50,000, altcoins likely to explode

BTC/USDT 1-week chart

BTC/USDT 1-week chart

BTC sell signals and fractals

Supporting a short-term correction in Bitcoin price is the daily chart, which displays a red “one” sell signal from the Momentum Reversal Indicator (MRI). This technical formation forecasts a one-to-four candlestick correction. 

BTC/USDT 1-day chart

BTC/USDT 1-day chart

Lastly, as pointed out in the tweet attached below, Bitcoin price action from January 29, 2024, is eerily similar to what is playing out at the time of writing. Although fractals like these have a low probability of working out, it is interesting to note that different outlooks converge toward a potential crypto market correction.

The outlook for Bitcoin price remains bullish on the higher time frame and investors should not confuse a potential pullback to a market-spoiling correction. One risky development would be if BTC flips the $41,392 support level. This move would create a lower low for the weekly market structure, invalidating the bullish thesis. Such a move from BTC would suggest a potential correction to $37,893. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP