By Nathan Ferguson
- BTC price indicates a support confluence cluster at $42K to $40K.
- On-chain metrics are still bullish.
- A daily candle close beneath $40,490 will annul Bitcoin’s bullish thesis.
Bitcoin stayed in a critical zone amidst its journey within the previous three weeks. The crypto extended higher after breaching a crucial hurdle, but the past three days saw retracements. Bitcoin boasts higher uptrend chances despite the latest fall.
BTC Targets Two Significant Zones
Bitcoin price lost 10% between 5 April and 7 April, setting a swing lower near $42,714. Though the drawdown worried retail investors, it might not mean threats because of the support cluster stretching between $42K and $40K, a daily demand area, and a bullish cross between 50- and 100-day SMA.
Therefore, the demand zone at $40,900 – $42,316 caps any downward move by Bitcoin. Meanwhile, the crypto has to regain the $46,198 yearly open to trigger upswings in the near term. That can catalyze a buying strength that takes the leading crypto towards the 200-day Simple Moving Average at $48,249.
Conquering this area is a challenging task and unlikely with weak bullish strength. Bitcoin can wick higher towards the $50K psychological area but fail to sustain beyond the mark. Nevertheless, massive buying pressure for a decisive close beyond the area is critical to clear the road for further upticks. Traders can expect the barrier at $52K to be the final and challenging level for bulls. Thus, the area will likely cap BTC’s upside.
IntoTheBlock supports the upward move for BTC. Its GIOM model shows that the closest resistance zone stretches between $45,235 and $50,491. Here, nearly 6.4 million addresses that bought approximately 3.32 million Bitcoins stay out of money. S
Surprisingly, the region houses the 200-day Simple Moving Average at the area predicted from a technical view ($50K).
The net exchange metric highly supports Bitcoin’s bullish picture. The index tracks a coin’s outflow from exchanges. Nearly 100K BTC left centralized exchanges since 7 March. BTC has seen such massive numbers five times in its history, and the recent one is the 6th such transaction. The on-chain index shows long-term traders are highly optimistic about BTC price performance.
A daily candle close under $40,490 will ruin the demand region and bullish thesis. Such scenarios might send the dominant crypto towards the $34,752 support. Massive bearishness will drag BTC to $30,000.