As risk sentiment returns to the markets, it is now acknowledged the pandemic-induced spike in inflation is no longer temporary as investors seek refuge in Bitcoin (BTC). Over the last 24 hours, the value of the cryptocurrency market has increased by about 3.50% to 2.04 trillion dollars. Surpassing the psychologically significant mark sparked interest in Bitcoin (BTC). Since the beginning of the week, Bitcoin dominance has fallen just short of the whole crypto industry, reducing its market share to 40.19%. However, BTC stabilizes after hitting correction territory near the $41,126 on Thursday as bulls extend rally above $43K. It is too early to declare that a new crypto bull run has begun as the BTC/USD pair is now 35% lower than its all-time high, while the total market value is still far below the nearly $3 trillion recorded on November 10, 2021. At the time of writing, Bitcoin’s price is exchanging beneath $43,000 after reaching $43,511 intraday high. Bitcoin whales purchased an additional 40,000 BTC in the last two days before the recent rally past $43,000, as per the latest Santiment statistics. With impending volatility, traders’ perceptions of large-cap assets differ, according to Santiment. Traders believe there is a buy-the-dip chance in Bitcoin.
Key Levels
Resistance Levels: $50,000, $47,000, $45,000
Support Levels: $42,000, $40,000, $37,500
BTC/USD Daily ChartThis week, Bitcoin price declined beneath the $43,000 support turned resistance. It broke many hurdles near $42,500 and $42,000 to move into a negative zone. However, a bullish bounce from the daily low of $41,126 assisted BTC/USD price bid well above $42,500. The BTC daily low level does not constitute a market bottom.
Negative forces may reappear if the price breaks below the $42,000 zone, and if this happens, the price may test the $40,000 low. A breach below might lead to a test of lows around the $37,500 and $35,000 support levels. Near-term bias might remain with bears while the action stays below the psychological region of $45,000.
BTC/USD 4-Hour ChartAn optimistic bias is supported by short-term momentum indicators. The 4-hour relative strength index (RSI) is above its 50 neutral thresholds, while the price is above the moving average (MA 50), indicating that momentum is still gaining traction. It could mean that the optimistic bias is gaining more strength.
If the bulls maintain control, initial resistance on BTC/USD might be in the clustered region, spanning $45,000 and $47,000 levels. Crossing above the latter might improve the pair’s bullish momentum, allowing buyers to focus on the $48,500 barrier before moving on to the $50,000 psychological zone.
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