Bitcoin has shown a strong bull run over the past few weeks, but is now showing signs of weakness as it approaches key resistance levels. A likely scenario is that Bitcoin could retest the price range of 50,000 ~ 52,000 USD. This price zone acts as a strong support level, where the price has bounced during previous corrections.
Technical factors indicate that the 50,000 ~ 52,000 USD zone is an important support level. The RSI is in the overbought zone, suggesting a short-term correction is possible. In addition, trading volume is also decreasing, showing a lack of motivation to continue pushing prices up.
Fundamentally, market sentiment can be affected by news about legal regulations or global economic fluctuations. If there is any negative news, Bitcoin could easily return to test this support zone.
However, if the $50,000 ~ $52,000 zone holds, this could be an attractive buying point, opening the door for a new rally.
