The overall cryptocurrency market continues to benefit from the inflation crisis hitting economies around the world. Bitcoin is stabilizing and forgetting some of the massive risks and uncertainties caused by geopolitical challenges. Bullish signs have formed for BTC as Bulls recapture the key barrier at $42,000 from the weekly low of $38,550 after 3 days in a row surge to the north. After BTC/USD plunged to a year-to-date low of $32,933, the pair has remained within an ascending channel with a range between the stated low and year to date high of $48,240. The price of BTC has continued to fluctuate after its recovery from recent losses. At the time of analysis of BTC/USD, bullish sentiment is backed by a positive advance on the daily moving average (MA 50) at a $42,787 intraday high. According to Stepan Uherik, the chief financial officer of SatoshiLabs, the company behind the Trezor hardware wallet, there are a few methods for governments to limit the use of noncustodial wallets, but there is no mechanism for outright banning.
Key Levels
Resistance Levels: $47,000, $45,000, $43,000
Support Levels: $40,000, $37,000, $35,000
BTC/USD Daily ChartBTC/USD is mildly trending north after bouncing off the $40,000 support level, as seen on the daily chart, however, the recovery through the moving average (MA 50) in the present sessions suggests a significant return of positive momentum in the broader perspective. In the near term, Bitcoin is attempting to shed its bearish stance.
On the other hand, a return below MA 50 after the recent recovery will suggest a flattening trend rather than a bearish bias, since BTC/USD may range just around the MA 50. A bullish spike serves as significant reinforcement for the $40,000 support region. The outlook remains risky as the trade could develop a rangebound trend in the following sessions.
BTC/USD 4-Hour ChartThe moving average (MA 50) on the 4-hour time frame remains in a bearish bias as bulls attempt to break through the $43,000 barrier. Meanwhile, the 4-hour RSI remains in the positive zone but yet overbought, indicating that bullish factors are still in play in the short term. A break might draw buyers’ attention to the 4-hour moving average (MA 200) above $43,000.
In a bullish scenario, if buyers push the price above the moving average (MA 200) resistance zone, the price might target the $45,000 barrier. If bears return, BTC’s initial support might be around $42,000. A definitive fall below this level might heighten selling forces, allowing the market to approach the $39,550 recent bottom.
Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
