In recent days, Bitcoin seems to be trapped between $40,000 and $45,000 and this is the prime support level and also a resistance barrier for Bitcoin to see a downfall or upswing.
Bitcoin has now raised above the critical support level, as at the press time Bitcoin is changing hands at $42,504 with a plunge of 3.08% over the last 24hrs. A break above $45,000 could lead Bitcoin strongly towards $50,000.
Bitcoin At A Pivotal Point
The recent research on Bitcoin has revealed that right now Bitcoin is at a crucial point. A Crypto market intelligence tool, Decentrader, alerts Bitcoin traders of its yearly pivot price.
In the month of April, Bitcoin had two retests at the $43,000 level, yet the flagship currency failed to surpass the $45,000 level. Since Jan 1, 2022, BTC Price has marked $46,200 as a crucial support level. Since when the currency dropped below this level, the traders are having a tough time.
The present volatility that Bitcoin is facing also points towards price retracing back towards $40,000 or even below. According to Decentrader, the bull zone is already here and this comes in the form of the yearly pivot, which lies around the $43,500 price level for 2022.
Also, analyst Filbfilb states that “Bitcoin was rejected off the Yearly Pivot, a level which has not been broken in either of the last 4-year cycle bear markets.”
Though the current pattern points toward a bearish cycle for Bitcoin, a breakthrough above the $43,500 pivot point will not only push Bitcoin towards a bull run, but the currency will see a historically unusual event.
Federal Reserve To Play a Crucial Role
As US Federal Reserve’s balance sheet reduction is expected to happen anytime soon pressurizing stocks & risk assets, Filbfilb claims that Fed’s action could impact BTC price action for months to come. It looks like Bitcoin’s bearish cycle period is all dependent on liquidity take.
Data from on-chain monitoring resource Coinglass indicates that this week has already seen the largest long liquidation episode since January.
If Liquidity is both above and below the spot price then the potential for a squeeze in either direction remains high, Filbfilb asserted that with the potential upside target still north of $50,000