The price of bitcoin (BTC) hit $42,000 on March 9, as an impressive overnight candle saw bullish momentum reclaim support levels.
Trader: The market “remains fragile”
Data from Cointelegraph Markets Pro and TradingView showed that The BTC/USD pair abruptly “pressed” through the previous resistance at $39,600, moving on to offer 24-hour gains of 11.3%.
Amid local highs of $42,438 on Bitstamp, the mood among traders was also improving, but caution remained.
Multiple macroeconomic factors: the war between Russia and Ukraine, inflation and the upcoming US executive order on crypto kept commentators cautious.
“I can’t deny that the market is looking a bit better after this move. However, it remains very fragile, short-term and uncertain,” said Michael van de Poppea Cointelegraph contributor, as part of his Twitter comments of the day.
His colleague and analyst Pentoshi was similarly cold on the performancewhich returned bitcoin to the top of a range it had been in throughout 2022.
IF 40.7k holds on the 1D/3D THEN will look once again for the yearly open for a third time prev was from near blue “value area”. First two both came up just short. Third time likely the charm IF 40.7k holds
Below 40.7k = not good
Targets:
Hold 46.2k
and 52-53k https://t.co/zMkoiCZcjV pic.twitter.com/tSigWopXn3— Pentoshi (@Pentosh1) March 9, 2022
IF the $40,700 level holds in the 1D/3D THEN it will once again look for the yearly open for the third time. Previously it was from near the blue “value area”. The first two fell short. The third time will probably be the charm, if the $40,700 level holds.
Below $40,700 = not good
Targets: Hold the $46,200 level, and $52,000-53,000
“This was a good squeeze, but Ultimately I want to see bitcoin recover to the $46,000-47,000 level so I feel confident that momentum has been regained.” added William ClementPrincipal Insights Analyst at Blockware.
Bets were kept open as to the impact of Thursday’s consumer price index (CPI) data for February, which is expected to be 7.9% and a key driver of short-term volatility for the BTC/USD pair.
The data will precede next week’s decision on key Federal Reserve interest rates.with equally varied expectations as to its scope.
“The first drop in BTC from $60,000 to $30,000 in 2021 was caused by the mining ban in China. The second drop from $60,000 to $30,000 in 2021 was caused by inflation combined with possible rate hikes and the end of the QE”, argument PlanB, creator of the family of stock-to-flow Bitcoin pricing models.
“Currently the odds of rates going up and QE ending seem low.”
LUNA tops returns for major altcoins again
Bitcoin performed strongly even against many altcoins, with the top ten cryptocurrencies by market cap having a hard time keeping up..
Ether (ETH) is up 7.2% on the day at the time of writing this article, while others were flatter, like XRP with 3.7%.
The strongest gains belonged to Terra (LUNA) once again; the LUNA/USD pair managed to post 20% gains and its biggest high since mid-January.
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