Bitcoin (BTC) faced rapid volatility as the new week began with BTC price action focused on $42,000. Will you be able to endure it?
The biggest cryptocurrency, which posted a weekend gain of more than 10%, is still keeping traders guessing its next move.
A rise to $40,000 was well expected, but the question now is whether the recent move represents the start of a new trend or, conversely, a new bulltrap.
Currently, valuations vary widely, with bullish and bearish views fighting for vindication.
Cointelegraph takes a look at the most important support and resistance levels currently underway after the recent BTC price performance reshaped the market environment.
BTC/USD is currently trading around $41,600, according to data from Cointelegraph Markets Pro and TradingView, having hit a 19-month high of $42,160 this morning.
Bitcoin whale “sells” at $42,000.
A cursory look at order book liquidity will give you an immediate idea of where buyer support and seller interest lie.
Uploading Trading resource Material Indicators showed the strongest concentration of bids at $41,500 and $40,700 at the time of writing, according to data sent to
There is significant selling pressure waiting just above the spot price, and large traders are already selling into the rally. According to Material Indicators, this is no coincidence.
“As I have said all week, I thought Bitcoin would continue to rise as long as whales continue to attract bid liquidity or attract enough to distribute it,” he explained in an accompanying commentary.
“They succeeded in attracting over $120 million into the active trading range, so we were not surprised to see BTC draining $42,000 before the sell-off began.”
According to the analysis, the sell-off cooled once the buying barrier was removed, and yet $86 million was sold in just 30 minutes.
“I’m not sure if the party is over yet. A new $30 million bid liquidity block has emerged to potentially continue the game,” he noted.
Meanwhile, liquidity data from statistical resource CoinGlass showed $42,420 as a nearby area of interest for derivatives on Binance, the largest global exchange, since Wall Street opened on December 4.
Long-term BTC price levels remain valid.
Zooming out, there is no denying the psychological gravity of historical BTC price levels.
Related: Breakout or $40K Bull Trap? 5 things you need to know about Bitcoin this week
For Scott Melker, a trader, analyst and podcaster who has seen many such lines emerge in the sand firsthand, this is more important than ever.
“$42,000 is historically one of the most important levels for Bitcoin,” he said. said December 4th X subscribers.
The attached chart lists the key price points to watch, which have been various magnets since launch. Some were two years ago.
For example, $42,000 represents the early rejection price in early 2021, when BTC/USD surged on news that electric car manufacturer Tesla had added Bitcoin to its balance sheet.
Melker explained, “It was the dead top of the ‘Tesla’ pump in January 2021, and it has played a role of support and resistance countless times since then.”
Elsewhere on the chart are $31,860, $28,050, and $25,200. These are all important support and resistance levels since they were first created in 2021.
On the positive side, $48,240, $51,790 and of course the all-time high $69,000 represent psychologically appropriate resistance levels to market sentiment.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.