- Bitcoin price has fallen below $39K support level amid increased selling pressure, breaking below ascending channel pattern
- On-chain data shows whales still accumulating, so correction may be temporary before new highs, but failing to hold $39K risks more declines
- Bitcoin bouncing off $39K support could lead to consolidation period before bull run continues, but breaking below it could trigger further pullback
The cryptocurrency market has experienced a significant pullback in recent days. Bitcoin, the market-leading digital asset, has fallen below the $39,000 support level amid heightened selling pressure.
Technical Analysis of Bitcoin’s Price Movement
Bitcoin‘s multi-week corrective phase has resulted in a substantial decline, with the price dropping below the middle boundary of the ascending channel. This key support level around $39,000 has provided a temporary floor. However, the 200-day moving average near this price zone gives credence to its strength as support.
The 4-hour chart shows that Bitcoin’s rejection from $48,000 prompted a breach below the ascending flag pattern. After a failed pullback attempt, the asset continued its downward trajectory in a distribution-like manner. Nevertheless, the major support at $39,000 coincides with the 0.5 Fibonacci level, making it a significant barrier for sellers.
On-Chain Data Reflects Continued Accumulation
According to on-chain data, Bitcoin’s price peak this year still exceeds metrics associated with accumulation by long-term holders. Therefore, despite the ongoing correction, whales likely have not concluded their bullish accumulation phase.
Following the necessary 1-2 month adjustment period, Bitcoin will likely surge to new highs again. However, a break below $39,000 support could trigger further declines. Overall, Bitcoin’s price action near this pivotal zone remains crucial for its medium-term outlook.
Conclusion
Bitcoin has retraced considerably but remains above the critical support confluence near $39,000. This area is key for the market’s next directional move. A bounce from this zone could lead to a consolidation period before the continuation of the bull market. However, failing to hold above it risks a more significant pullback.
