On March 22, 2022, Bitcoin gained 5% trading at $43,000 resistance showing a bullish trend. The move liquidated over $150 million worth of leverage short position. At the press time, Bitcoin has plunged to trade around $42,000.
BTC Price Anlysis
The recent changes in the market situation have led to strengthening investor trust. The result was the growth of Bitcoin from $38K to $42K. BTC Price recently corrected lower after testing the $43,400 zone. and is currently trading above $42,000. However, to stay in a bullish trend the BTC/USDT pair must stay above the $41,500 support level.
At present, the Bitcoin price is encountering resistance near $42,800. The next major resistance level could be around $43,000. A successful break and close above the $43,000 level could signal the start of another steady rise. On the other hand, BTC Bulls are defending the $42,000 support zone. A key bullish trend line is forming with support near $41,950.
Overall, At press time The main support is located near $41,500. A break below the $41,500 support level could push the price even lower, towards $40,500.
Analyst Take On Bitcoin Price Action
Market analyst & pseudonymous Twitter user “Rekt Capital,” posted a chart claiming that “if Bitcoin successfully retests the green dashed diagonal as new support, then it will spring towards the green $43100 resistance level ahead”.
As per the analyst this points towards the end of multi-month series of lower highs for Bitcoin and also suggests soon there could be a bull run.
Also, Scott Melker, host of The Wolf of All Streets podcast & Joh Wick, option trader & pseudonymous Twitter user are bullish with an opinion that the present price movement will lead to further price gains
On the contrary, another trader & pseudonymous Twitter user Ed_NL warns that opening a BTC long based on price action that shows a price surge can be a bit premature move.
The analysts state that “BTC forming a bearish flag after the initial drop, but this feels like a typical trap where we first take out the early shorters before going down to correct.”
Looks Like Margin Traders Are Longing!
The above chart depicts that the ratio has decreased from 15 which was on March 20 and landed to 7.5 currently suggesting that traders have been borrowing more BTC recently. If the margin lending positions below 3 it is considered unfavorable, but as the margin lending is still above 3, the current level remains positive.
With this the global Cryptocurrency market stands at $1.91 Trillion with a decrease of 0.19% in the last 24hrs.
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Source: https://coinpedia.org/bitcoin/correction-might-take-btc-to-this-level-in-coming-hours/