The crypto markets have recovered quite a bit in the past week. All this was possible because Bitcoin was able to stay above $40k for a while. Yesterday, Bitcoin was rejected from the $43.5k level, and this has already happened thrice till now. After yesterday’s fall, the price bottomed out at $41.8k, and now Bitcoin revisits the breakout region again. It is now trading at $42.8k, and it will be essential to see whether a breakout will happen.
Bitcoin revisits breakout region
The $42k level has been an important support for Bitcoin, and it has held this time as well. We have some resistance at the $42.5k region as the 100 hourly SMA, but it has also been beaten by the bulls. Any downward correction from the $43.5k region is expected to hold at the $42k-$42.5k level. However, we should also note that the price has already been rejected thrice, so the bulls may very well beat $43.5k this time.
As you can see from the 1-hour chart, a bullish trendline has also been forming, which should hold if the price needs to move up. The critical level on the upside will be the $43.3k and $43.5k level. Even if they break, a good volume will be required to make sure that the price sustains over that level. Unless that happens, there is a good chance we will fall back to lower levels and have to retest the resistance again.
Altcoins and Ethereum
The price of altcoins and Ethereum has recovered quite a bit, with Bitcoin staying above the $40k level. Since it hasn’t moved much and is mostly trading in a range, it was an opportunity for altcoins to make some gains. Ethereum is a good example of this. The price has already moved past $3,000 and has surged a lot in the last week. Other coins like Polkadot, Link, and Solana have also increased in price due to the recent bullish sentiment. Even ADA has moved past the $1 mark and is already trading at $1.09, which shows the rally has started to take off.
What are your thoughts as Bitcoin revisits the breakout region? And do you think that this is the beginning of the 3rd phase of this bull market? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.