Global financial markets continued to face an uphill battle on April 7 following recent aggressive comments from the US Federal Reserve hinting at a rapid rise in interest rates as a course of action to help curb runaway inflation. .
Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin (BTC) price hit an overnight low of $42,744 following the Federal Reserve comments and has since entered a consolidation pattern near support at $43,500.
Here is a look at what various analysts in the market are saying about the outlook for Bitcoin at this level and which support and resistance zones to watch moving forward.
The bulls need to hold the support at $43.100
Market analyst and pseudonymous Twitter user Rekt Captial discussed what’s next for Bitcoin based on its past performance in this zone, who public the chart below highlighting the importance of the $43,100 support level.
Rekt Capital said,
“If history repeats itself and BTC continues to hold the ~$43,100 level as support…then BTC could once again enjoy upside to $40,000 and even $50,000.”
BTC and the NASDAQ
The correlation between the price movements of Bitcoin and the NASDAQ was highlighted in the chart below. published by filbfilb, co-founder of trading suite DecenTrader, who noted that “Since 2019, multiple sell-offs at all-time highs on the NASDAQ have resulted in a strong sell-off, which saw BTC also correct at the same time.”
filbfilb said,
“What followed was a bullish inverse head and shoulders reversal, confirmed by testing the 50 DMA and ATH on both legacy and BTC; a possible scenario ahead.”
Further evidence to support a possible imminent breakout of BTC was provided by crypto analyst and pseudonymous Twitter user TAnalyst, who public the chart below that analyzes the price action of BTC when a bounce occurs in the price oscillator.
Tanalyst said,
“April 2012 price oscillator bounce, then bull run. March 2020 price oscillator bounce, then bull run. February 2022 Price Oscillator Bounce… Tell You [dejo] to you to finish.”
A breakout to $57,000 or a pullback to $36,000
The loss of support at $44,700 was “expected after losing that recent low,” according to crypto trader and Cointelegraph contributor Michaël van de Poppe, who public the chart below detailing the breakout from $46.881.
poppe said,
“Currently on a major breakwater. If we hold this, all good, looks set for another stretch to $57,000. If we don’t, then I’m looking at a test of around $36,000.”
The global cryptocurrency market capitalization now stands at $2.015 trillion and the dominance rate for Bitcoin is 41.2%.
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