The digital asset space witnessed one of the most amazing surges in the past few years, as Bitcoin touched $48,000 within an hour since the Tesla investment new broke out. There had been some rumors surrounding the firm’s investment, but its SEC filing confirmed the news. The $1.5 billion purchase drove more buys in anticipation of a price growth, which eventually occurred within the $43,000 range before hitting $48,000 within that day.
Many social media platforms had the investment as a trending topic, where many investors shared their opinion concerning possible price predictions and Tesla’s contribution towards global adoption. The firm added that it would support crypto payments for its products, which got an applaud from the digital asset space to seal the deal.
Bitcoin shows signs of recovery
The asset stooped to $47,000 at a point, which shows the asset is likely to witness some more significant price correction from its ATH of $48,000. The asset has some main resistance, which stands around $52,000, $54,000, and $56,000. On the flip side, the crypto has its closest support around $40,000, $38,000 and $36,000.
The charts show that the asset is currently seeing some price corrections, with buyers reducing the purchases. The correction has been unstable, with the price dropping beneath the $44,000 range to stabilizing around $43,700. It’s safe to note that the asset still trades over its 9-day and 21-day MA while still declining slightly.
The correction is healthy with a volatile asset like Bitcoin, and it has seen even more drastic price drops, which caused some investors’ exit from the digital asset space. The crypto is now recording some daily lows, showing that the asset could fall below its $42,000 if the sell-off persists.
Some traders are currently securing profits from the gains, thereby leading to an increased selling pressure, which is presently responsible for the continuous price falls. Some technical indicators show that it could turn into a bear run if the consolidation period persists, which would drag down prices.
Price expectations for Bitcoin
The asset has to push past its current all-time high to ensure significant growth when looking at the current market structure. In contrast, the market bulls need to get stronger liquidity to achieve the feat and eventually move towards the $50,000 mark.
The slope movement downwards could signal some presence of the bear market to prevent the price gain. If bulls don’t hold the market, the bears would gain control and take the price to around the $40,000 mark.
Fortunately, the asset still holds its $42,000, which could mean that it would go into another bull run, ensuring higher highs. Some indicators show that the asset would likely find it hard to move past its closest resistance now, $48,000, significantly since the selling pressure weakens price strength.
A likely possibility would be Bitcoin’s price rising and stabilizing around the $45,000 mark before making another move towards taking the $50,000 point, where it will see significant pullbacks. Fortunately, the Tesla purchase would give BTC some long-term price benefits.
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