Bitcoin price to reclaim $44,000 after brief correction

Bitcoin (BTC) price saw bulls trying to plant a flag back above $43,000 at the beginning of this month but failed as price action underwent some profit-taking in the last trading hours. The handover of the trading session to ASIA PAC resulted in a short fade, which offered bulls a window of opportunity to re-engage again. With the situation stabilising in the global market and Ukraine, investors are trying to benefit from this sense of relief rolling through markets and making some gains of it, with BTC price set to be lifted towards $44,088 in that spirit.

Bitcoin price nears crucial moment that could turn its rally into a broader uptrend

Bitcoin price is enjoying the positive vibe that is present in the markets, with the S&P 500 avoiding a dead-cat-bounce on Tuesday, investors are back with interest and cash into risk assets like stocks and cryptocurrencies. Bitcoin price saw a very punchy move on Tuesday as that positive mood was turned into a tailwind that has lifted price action to a close above $41,756. A fade following such a bullish day is quite normal and, in the meantime, offers a window of opportunity to get back in as the Relative Strength Index (RSI) still has some room to go before being labelled as ‘overbought’.

BTC price is set to target $44,088 to the upside, a historic pivotal level that goes back to August 6th, 2021. Not only are the tailwinds and the RSI doing their part in the rally, but the 55-day Simple Moving Average offered some upward pressure. Last week BTC price already got picked up just before an actual test on the 55-day SMA level was at hand. With these supportive elements added to the current tailwinds, investors have plenty of incentive to be part of Bitcoin price action and should ramp prices further up above $44,000.00.

BTC/USD daily chart

Event risk at hand comes with Biden visiting the G7, NATO and EU leaders on Wednesday and Thursday in Brussels. The fact that the US President is coming in person to these meetings sets expectations relatively high for at least another round of sanctions or even a bigger coordinated embargo supported by all the above organisations. Markets will need to reassess the financial impact and consequences on inflation and other macroeconomic metrics, which could trigger a correction in cryptocurrencies and lead Bitcoin to tank 6% towards $39,780.