Bitcoin price closes above the August 1 high of $42,599, marking the end of the decline for now.
Bitcoin price suffered a brutal pullback as it fell from being extremely close to a crucial psychological level to breaking a stable support base. Despite the sudden drop, BTC bulls stepped in and started what appeared to be a recovery.
Bitcoin price awaits a new uptrend
Bitcoin price fell into the demand zone ranging from $38,207 to $42,206 on September 21, but the resurgence of buying pressure pushed it back. At the time of this writing, BTC is trading well above the upper limit of the said support area.
Further increase in bid orders will likely push the leading cryptocurrency towards the $44,705 resistance level. Breaking this resistance will open the way to a critical buying ceiling at $46,833. While this area is difficult to overcome, doing so will open the way to the psychological $50,000 level.
Regardless of the recovery seen in the last 10 hours, if BTC fails to make a daily close above $42,206, it will indicate weakness among bidders. In this case, market participants can expect the Bitcoin price to recover in the demand zone ranging from $38,207 to $42,206.
However, a break of $38,207 would invalidate the bullish argument and potentially trigger a steep decline.
Technically , above the 43,500 resistance above in Bitcoin, 45,962 and then 48,546 resistance levels can be tested. On the downside, if the 41.168 level is broken, a drop to 38.632 and then 35.757 support can be seen.