As the price of Bitcoin hovers above the $42,000 level, the price range is stabilizing. Investors believe that the once toughest resistance at $38,000 is now surpassed as the king of cryptocurrencies suddenly reaches the $42,000 level. It is likely that this area will be breached and a new resistance will be broken soon.
The increase in Bitcoin price brings more liquidity, new investors, and risk appetite to the cryptocurrency markets. Therefore, we witness that every bull market starts with the leading cryptocurrency. As the king cryptocurrency aims to surpass $42,000 and reach new highs, predicting the outcomes is not difficult.
With the increase in Bitcoin price, it is expected that altcoin rallies will expand as well. Markus Thielen, the research director at Matrixport, stated that Bitcoin price could surpass $60,000 by April. Looking at the performance in the last three months, this target does not seem unattainable anymore.
Bitcoin price is comfortably advancing at levels where it needs to face significant resistances. This interesting rally may indicate that the bull season has already started. Many investors still expect a price rejection at a certain level followed by a drop below $30,000, but if you have been in the cryptocurrency market in 2022, you should have experienced the same psychology in the opposite direction (downward) as well.
Due to the sharp rise in Bitcoin price, the RSI has been pushed into the overbought zone. Normally, with an overbought RSI, the BTC price cannot stay at high levels for a long time. While a balance is expected with profit-taking, in extraordinary situations (abnormally good/bad news flows), the price can stay at the top or bottom for a long time and push the price to extremes. If we don’t see a correction due to RSI, the Bitcoin price could rise up to $48,000. However, in case of a correction, a close above $37,926 is important for a return to the previous range. But if this area is lost, the price could drop to $36,500 or lower levels.