Key Bitcoin (BTC) price range to watch, a $40,000 correction is not out of the question

The world's largest cryptocurrency Bitcoin (BTC) continues to show sideways movement as the price consolidates around $51,000. BTC posted its first negative weekly close in about four weeks as Bitcoin price began a rally toward $52,000 in late January. At press time, BTC is trading 0.14% down at a price of $51,500 and a market cap of $1,011 billion.

Important Bitcoin (BTC) price range to keep an eye on

While everyone is eagerly awaiting a March rally ahead of the Bitcoin halving, JPMorgan believes the rally is already priced in.

Popular crypto analyst Ali Martinez reports that Bitcoin price is fluctuating between two key supply zones that could determine its near-term trajectory. The first supply zone, which serves as a critical support level, is between $50,000 and $51,570, with about 1.3 million addresses holding a total of 670,220 BTC.

Conversely, the second zone, which acts as a formidable resistance barrier, ranges from $51,640 to $53,200, with 752,600 addresses collectively holding 351,600 BTC. However, citing data from Coinglass, Martinez also pointed out that “$76.38 million will be liquidated in lump sum if Bitcoin price rises jumps to $52,250!”

Analysts believe that a decisive break above the resistance zone could pave the way for an uptrend towards $57,130. Conversely, failure above the support zone could signal a corrective move towards $47,700.

Courtesy: Ali Martinez

BTC price drop to $40,000 not ruled out

Some market analysts have also urged caution among investors at this stage, noting that the upside potential of Bitcoin price from now on appears to be limited. Crypto analyst Michael van de Poppe expressed uncertainty regarding the possibility of an impending correction in Bitcoin price.

He believes the current rally could peak in the $54,000-$58,000 range. After this high, he predicts a significant correction to the $40,000-$42,000 range, which is likely to occur after the halving.

Courtesy: Michael van de Poppe

In addition, many market analysts expect a significant correction on Wall Street this year. Last week, Bitcoin maximalist Max Keizer stated that a 1987-like correction on Wall Street was likely. Historically, whenever there was a major correction on Wall Street, the Bitcoin price and crypto market crashed. However, Max Keizer believes that Bitcoin will prove to be a risk-averse asset this time.

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