- Bitcoin trades in a relatively tight range on Saturday following Friday’s drop.
- Key support is located in the $44,000-$45,000 area.
- Near-term recovery could lift BTC back to $50,000.
Bitcoin extended its weekly slide and touched its lowest level in more than two weeks near $44,000 on Friday. Currently, BTC/USD is little changed on the day at $46,800 but remains on track to snap a four-week winning streak, losing nearly 20% since Monday.
Buyers manage to defend key support
On the daily chart, the Fibonacci 50% retracement level of the Jan. 28 – Feb. 21 rally at $44,00 seem to have formed strong support for Bitcoin. At the moment, BTC/USD trades a little below the next Fibonacci retracement level, %38.2%, at $48,000. A decisive break above this level is likely to open the door for additional gains toward $50,000 psychological mark, which is also reinforced by the 20-day SMA.
On the other hand, sellers could look to retain control with a daily close below $44,000 and force Bitcoin to edge lower toward $40.000 (Fibonacci 61.8%, 50-day SMA, psychological level).
BTC/USD one-day chart
Additionally, IntoTheBlock’s In/Out of the Money Around price (IOMAP) model confirms that significant support is formed around $45,000 with investors purchasing nearly 430K BTC. Furthermore, the near-term hurdles mentioned above could also be seen on the IOMAP chart as areas of interest.
BTC IOMAP Chart
Read here about Ethereum price.
And here about markets data.