The cryptocurrency market is green after a slight correction following a sharp fall from fresh yearly highs. The pioneer cryptocurrency, Bitcoin (BTC) has recovered to settle within a narrow range bounded by $36,000 and $38,000 levels. The path higher looks quite open with BTC/USD return flight past $40k unflagging. Bitcoin traded above $38,000 in the present session after a steady but gradual rise from the support at $32,200 since Jan 31, 2021. BTC currently has a market cap of $696.87 billion, placing it 1st on the Coinmarketcap table, with $71.56 billion in trading volume over the past 24 hours. The resumed appetite for Bitcoin may indicate a continuation of bullish dynamics in BTC/USD towards $42,000 for the second time in history. At the moment, BTC/USD is trading at $36,371 after a shot at $38,769 intraday highs. Bitcoin HODLer addresses now control 2,851,608 BTC or roughly 15 percent of the total supply, GlassNode records indicate. The growth of HODLer addresses is presently at a 3.5 year high, adding 22 percent year-on-year. Recently, 80k BTC was transferred to HODLing addresses.
*Bitcoin (BTC) has recovered to settle within a narrow range bounded by $36,000 and $38,000 levels
*The path higher looks quite open with BTC/USD return flight past $40k unflagging
*Bitcoin HODLer addresses now control 2,851,608 BTC or roughly 15 percent of the total supply
Resistance Levels: $42,000, $41,500, $40,000
Support Levels: $35,000, $33,000, $32,000
BTC/USD Daily Chart: Ranging
BTC/USD Daily Chart
The technical picture on the daily chart indicates a clear exit from the downtrend channel and a bullish reversal. With a minimal trading history in the current regions, the price may go up without much resistance. Recovery is, however, an uphill battle with the seller congestion at $40,000 unshaken except breached.
On the downside, support seems to have been stressed by the MA 50 at $32,000 as seen on the daily chart. The ongoing rebound has also been validated by the Relative Strength Index, as it levels past midline 50. Trading beyond $40,000 will sustain the uptrend, with the focus shifting to $50,000.
BTC/USD 4-Hour Chart: Ranging
BTC/USD 4-Hour Chart
Bitcoin is appearing increasingly bullish on a 4-hour time frame as positive tones continue to spread through the wider cryptocurrency market. Technical analysis shows that the BTC/USD pair is likely to test towards the $40,000 level if the $38,700 level is broken. To the downside, a daily price close under the MA 200 and $34,960 level is now required to increase bearish pressure.
Traders that are bullish towards the BTC/USD need to see a daily price beyond the $39,000 level to consider staying in the current rally. The BTC/USD pair is only bullish while trading above the $35,000 level, key resistance is found at the $38,700 and the $40,000 levels. If the BTC/USD pair trades below the $35,000 level, sellers may test the $33,000 and $32,000 levels.
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