Bitcoin price “likely to start next rally” if $42,000 stands as support
Bitcoin price “likely to start next rally” if $42,000 stands as support.
The crypto market remains volatile as investors refocus on what steps the US Federal Reserve (Fed) can take to combat rising inflation and market turmoil as tensions remain in Ukraine.
Data from TradingView shows bitcoin price still floating around the $44,000 support and traders expect an inverted head and shoulders pattern to lead to a bullish breakout.
BTC/USDT 1-day chart | Source: TradingView
Here’s what some market analysts are watching as global issues ranging from inflation to war continue to impact the cryptocurrency market.
Balanced volume signals a bullish trend reversal
Based on Equilibrium Volume (OBV), market analyst and Twitter user “IncomeSharks” predicted what could happen for Bitcoin in the immediate future as the indicator shows a bullish reversal signal. OBV is a momentum indicator that uses volume flow to predict an asset’s price changes.
“People tell me BTC hasn’t bottomed out yet. This is more of a bullish move than the previous move from $30,000 to $60,000. Double bottom, sharp V-shaped tip. Price action is just noise and people hear too much from Twitter Crypto.”
OBV BTC/USD 1-day chart | The source: income sharks
Bullish if Bitcoin price holds $42,000
Analyst and Twitter user CredibleCrypto also made a similarly optimistic prediction for BTC’s current price action. He added a chart with a lower timeframe showing that Bitcoin has plenty of room for growth.
“Strong rally, shallow pullback, keep it up. As long as $42,000 keeps the wave structure on the low timeframe, BTC is likely to start the next rally.”
BTC/USD 1 hour chart | The source: Credible Crypto
Price Bitcoin can increase by 25%
Market analyst and Twitter user Caleb Fransen also provided BTC momentum analysis and posted the chart below using the Williams %R oscillator – a momentum indicator measuring overbought and oversold levels.
BTC/USD 1 week chart | The source: Caleb fringes
According to Fransen, “A full swing from ‘oversold’ to ‘overbought’ indicates an impulse repulsion. This event has happened 6 times for Bitcoin since January 2020.
“After the boost on the weekly chart, the average 1-month return is +25%. Williams%R is currently trying to complete a 4 week impulse boost. I would be very optimistic if bitcoin could secure a strong weekly close.”
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