Bitcoin (BTC) is less than $50,000. Should investors be worried?

• Bitcoin (BTC) briefly declined, falling to $48,472.
• Bitcoin remains strong, targeting $51,500.

Bitcoin (BTC) hit a high near $50,400 before declining slightly to test the $48,406 level. However, the largest cryptocurrency is currently trying to breach $50,000 again amidst what analysts are calling a “golden bull phase” in the market.

Despite the prolonged slump, Bitcoin surged above the $48,500 resistance and briefly breached the $50,000 threshold before facing resistance. It reached a multi-week high of close to $50,300 before a corrective move occurred, which was its highest level since January 2022.

What’s next for Bitcoin (BTC)?

The recent slight decline in the price of Bitcoin coincided with the January Consumer Price Index (CPI) data released by the U.S. Bureau of Labor Statistics. CPI rose to 3.1%, exceeding the expected 2.9%, triggering a sharp adjustment throughout the financial market. On Wall Street, the S&P 500 index fell 1.37%, its worst CPI daily performance since September 2022.

Additionally, global cryptocurrency markets fell about 0.36% with Bitcoin reverting to $48,472. However, Bitcoin is currently trading above $49,550 and the 100-hour simple moving average with a major bullish trend line forming around the $49,750 resistance level on the hourly chart of the BTC/USD pair.

Immediate resistance is expected near the $49,900 level. If BTC successfully breaks above $50,000, it could begin another significant uptrend with a potential target above $50,400.

Conversely, if BTC fails to break above $50,000, it could trigger another downward correction with initial support at $49,200. Additional downside is that Bitcoin tests support level around $48,700, and a close below $48,400 could indicate increased bearish momentum and a downside target around $47,950.