BTC’s Bearish Momentum Could Be Stifled by Very Strong Support

Yesterday, Bitcoin’s (BTC) price suffered a steep correction, and even temporarily dipped below $41K. Well-known cryptocurrency analyst, Ali, shared in an X post today that if BTC faces an even deeper correction, the market leader is likely to find solid support in the range between $37,150 and $38,360.

This support range is made even stronger because of the fact that it is backed by about 1.52 million addresses holding 534,000 BTC. On the other hand, Ali also pointed out that there are two resistance levels to monitor that might impede Bitcoin’s upward momentum, with one at $43,850 and another at $46,400.

In case of a deeper correction, #Bitcoin finds solid support between $37,150 and $38,360. This zone is backed by 1.52 million addresses holding 534,000 $BTC.

Also, watch out for two resistance walls that could keep the #BTC uptrend at bay: one at $43,850 and another at $46,400. pic.twitter.com/NGm1XpMOLf

— Ali (@ali_charts) December 11, 2023

At press time, CoinMarketCap indicated that BTC was trading hands at $41,770.98 after its price slipped by 1.42% throughout the past 24 hours of trading. This came after the market leader set a low price of $40,234.58 over the same time period.

The cryptocurrency king’s intraday volume ended up increasing by over 33%, which caused it to rise to about $31.93 billion. Despite its latest price dip, BTC’s weekly performance was still up by 0.66%.

BTC / Tether US 1D (Source: TradingView)

The recent downward movement in BTC’s price also seemed to have tilted short-term momentum in favor of sellers as both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators were flagging bearish. In the last 24 hours, the MACD line crossed below the MACD Signal line.

This is considered a bearish signal which indicates a potential trend reversal. Additionally, the RSI line was situated below the RSI Simple Moving Average (SMA) line, also suggesting that sellers may have gained the upper hand against buyers.

If these technical signals are confirmed, BTC’s price could likely experience a short-term decline down to $38,700. However, there is still the possibility that BTC’s price could recover.

If BTC manages to stay above $40,900 in the next 72 hours, it may bounce back from this key support level and reach $44,500. Further increases in buying pressure could propel the market leader’s price to $48,000.

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