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Analyst Reveals The Price BTC Won’t Drop Below

Bitcoin (BTC)

The crypto market, especially Bitcoin (BTC), has recently declined. Amid these fluctuations, the flagship cryptocurrency has been intensely scrutinized.

Despite its decline from the recent peak of $44,000, a crypto analyst urged the community not to “succumb to panic.” The current market situation reflects a typical correction phase rather than a long-term bearish trend.

According to Ali Charts, a prominent crypto analyst, Bitcoin has established a “robust” support zone between $37,150 and $38,360. This critical range is bolstered by the activity of approximately 1.52 million addresses that collectively purchased roughly 534,000 BTC at that price point, as indicated by Ali.

The analyst suggests that the significant accumulation forms a “strong” foundation, potentially preventing further declines in Bitcoin’s value.

Bitcoin’s Resistance And The Road Ahead

Despite the recent market downturn, Bitcoin’s potential for recovery and continued growth remains a subject of interest. Ali has also identified two key resistance levels at $43,850 and $46,400 that could challenge Bitcoin’s upward momentum.

These points represent significant thresholds where selling pressure may intensify, potentially hindering Bitcoin’s ability to reclaim its recent highs.

Meanwhile, the past 24 hours have seen Bitcoin’s price dip by 0.3% with a price below $42,000, continuing its retreat from the $44,000 mark. This reduction in value is mirrored in the crypto’s trading volume, which has fallen from $37 billion to $21 billion. This decline indicates a decreased trading activity, suggesting a cooling-off period following the recent market rally.

Bitcoin (BTC) price is moving sideways on the 1-hour chart. Source: BTC/USDT on TradingView.com

The Positive Side Of The Bitcoin Pullback

Amid concerns over Bitcoin’s price fluctuations, experts like William Clemente, co-founder of Reflexivity Research, offer a different perspective. Clemente emphasizes that the current pullback, potentially bringing Bitcoin’s price to around $40,000, is not necessarily a negative development.

Clemente argues that this correction is essential for “shaking out weak hands” and reducing leverage in the market, ultimately laying a more solid foundation for future growth.

The Co-founder of Reflexivity Research further noted that “Bitcoin’s volatility is a feature, not a bug.”

Featured image from iStock, Chart from TradingView

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.