Key highlights:

• Bitcoin saw a solid 4.3% price hike over the past 24-hours as it climbed back above $40,000
• The coin was in a downtrend since the start of April, after being rejected from resistance at the 200-day MA level at $48,000
• Luckily, the bulls defended the lower boundary of the current price channel and set the stage for a potential recovery ahead

What has been going on?

Although down from $48,000 since April, Bitcoin managed to see a respectable 4.3% price hike today as the buyers attempt to push away from $40,000 again. Bitcoin had dropped throughout April after the market reached resistance at $48,000 ( 200-day MA) toward the end of March.

The price drop caused BTC to drop as low as the early-June 2021 highs, briefly dipping beneath $40,000. Luckily, the support provided by the lower angle of a price channel (previously an ascending triangle pattern) allowed the market to rebound and push away from $40,000.

The current overarching narrative within the market revolves around the high inflation rate that is starting to show within the economy. Last week, the CPI was released with an 8.5% YoY figure, making the consumer price inflation the highest it has been since 1981.

As a result of the inflation , institutions and investors start to sell off their stocks, crypto, and fixed-income securities. For example, there has been a huge sell-off in the bond market itself.

Nevertheless, it is always necessary to bear in mind that the narrative of Bitcoin being a hedge against inflation is what caused the epic surge toward the ATH last year. With inflation starting to show in the economy, this narrative is likely to continue and should help an overall crypto surge.

Bitcoin price short-term prediction: Neutral

Bitcoin has to be considered neutral as it sits inside the consolidation of the price channel . For a strong bullish confirmation signal, BTC would now need to break the 200-day MA at $48,000 and clear the level. On the other side, a break beneath the March 2022 lows at $37,200 is likely to turn the market bearish again.

If the bulls can clear the 100-day MA level at $41,380, the first resistance lies at $42,000 – provided by the January 2021 highs. Above this, resistance is expected at $44,000, $44,750 (February resistance), and then $48,000 ( 200-day MA & bearish .382 Fib Retracement).

Beyond $48,000, additional resistance is then to be expected at $49,350 (1.272 Fib Extension), $50,000, $51,180 (1.414 Fib Extension), and $52,000 ( bearish .5 Fib Retracement).

For additional fundamental and technical analysis , check out the original article posted on CoinCodex: https://coincodex.com/article/14267/bitcoin-price-analysis-buyers-defend-price-channel-support-as-bulls-gear-up-for-potential-recovery/