As the new week begins, Bitcoin (BTC) is experiencing significant volatility, with a focus on the $42,000 level. The cryptocurrency, which saw a weekend surge of over 10%, is keeping traders on their toes with uncertainty about its next move.
While a rise to $40,000 was expected, the question now is whether this latest movement marks the beginning of a new trend or is simply a new bull trap. Opinions differ widely, with bullish and bearish perspectives vying for dominance.
Cointelegraph takes a closer look at the crucial support and resistance levels in play following the recent BTC price action that has reshaped the market landscape.
As of the latest data from Cointelegraph Markets Pro and TradingView, BTC/USD is currently trading around $41,600, having reached 19-month highs of $42,160 earlier in the day.
Bitcoin whales at $42,000
A quick look at the order book liquidity provides a glimpse of buyer support and seller interest. Material Indicators, a trading resource, revealed a concentration of bids at $41,500 and $40,700, while sell pressure remained muted above the current price level.
According to Material Indicators, large-volume traders were already selling into the rally, indicating successful attraction of bid liquidity to the range. However, as the buy walls disappeared, $86 million was sold off in just 30 minutes, leading to a slightly cooled selling pressure. Liquidity data from CoinGlass showed $42,420 as a point of interest for derivatives on Binance.
Long-term BTC price levels
Historical BTC price levels continue to carry psychological significance. Analyst Scott Melker pointed out the importance of $42,000, mentioning it as a major level for Bitcoin. He also highlighted other key price points and their role as support and resistance levels.
For instance, $42,000 marked the rejection price during the ‘Tesla’ pump in January 2021. Other levels such as $31,860, $28,050, and $25,200 also played vital roles since their creation in 2021. To the upside, $48,240, $51,790, and the all-time high of $69,000 are seen as crucial resistance levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
