The price of Bitcoin suffered a strong correction in the last two weeks after failing to break above the $48,200 resistance zone. The rejection resulted in a correction of 18.67% which drove the price of BTC to $39,200.
Despite significant losses, it appears that fringe investors have bought the dip as the flagship cryptocurrency has climbed back above $40,000.
From a technical perspective, the price of Bitcoin seems to be testing the 200 period moving average as support on the 3-day chart, which has managed to contain its decline since the end of January. Such a vital demand zone must continue to hold to avoid a steeper correction towards $30,000 or below.
Bitcoin 3 day chart
Still, the price of Bitcoin would have to rise above $46,000 to stand a chance of resuming its uptrend historical.
Source: Fx Street
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