Bitcoin (BTC) experienced a significant price correction, dropping to a low of $40,500 on Monday. However, it has since recovered and is currently trading around $42,000. Despite this correction, technical indicators and on-chain data suggest that BTC is resilient and bulls are striving to reclaim levels above $44,000.

Support at $40,000 is crucial for Bitcoin going forward. On-chain data indicates that investors prefer to hold rather than sell, which reinforces this support level. The resistance at the $44,000 supply zone has posed a challenge for bullish momentum, with Bitcoin encountering strong rejection from the supplier congestion area.

According to the Lookintobitcoin golden ratio multiplier indicator, Bitcoin has struggled to break convincingly at the $44,000 level. The indicator suggests that the 1.6 multiplier target has been reached, further reinforcing the resistance. On-chain data from IntoTheBlock’s “in/out of the money around price” (IOMAP) model reveals a price range of $43,346–$44,627, where aggressive selling from a group of sellers who previously purchased BTC may occur.

Renowned cryptocurrency analyst Ali Martinez suggests that Bitcoin has robust support in the range of $37,150 to $38,360 in the event of a more significant correction. This support zone is substantiated by 1.52 million addresses collectively holding 534,000 BTC. Martinez also highlights two resistance walls at $43,850 and $46,400 that could impede Bitcoin’s upward trend.

Despite the recent price dip, there has been an increase in entities holding 1,000 BTC or more, suggesting that Bitcoin whales are accumulating more. This indicates a potential bullish sentiment among these whales.

The ongoing market correction may be a bear trap within a larger bullish trend. Data from crypto market intelligence firm Santiment shows a rise in Bitcoin’s exchange outflows, indicating a preference among investors to hold rather than sell. This suggests a bullish sentiment and presents traders with an opportunity to capitalize on the dip before a potential continuation of the upward trend.