BTC price levels when the Bitcoin Wells market is about 42 thousand dollars
Bitcoin (BTC) Faces High Volatility With New Week Focusing on BTC Price Action at $42,000 – Can It Last?
The largest cryptocurrency, fresh off a weekend gain of more than 10%, is still keeping traders guessing on its next move.
While the move to $40,000 is well-anticipated, the question now is whether or not the new trend represents a new trend or, conversely, a new bull trap.
Opinions now vary widely, with strong and weak views fighting for righteousness.
After BTC's recent price performance revealed the market landscape, Cointelegraph now looks at the most important support and resistance levels in play.
BTC/USD is currently trading around $41,600, up from a 19-month high of $42,160 earlier in the day, according to data from Cointelegraph Markets Pro and TradingView.
Bitcoin whales started “selling” at $42,000
A quick look at the liquidity of the order book gives an immediate snapshot of where buyer support and seller interest lie.
Uploading the data to X (formerly Twitter) on December 4, Trading Resources Material Indicators showed the highest bids at the time of writing at $41,500 and $40,700.
Slightly higher selling pressure is expected above the spot price, with large volume traders selling the rally. This, as material indicators suggest, is no accident.
“As I've said all week, I think Bitcoin will continue to go up as long as the whales are able to pull the auction bill into the region or want to distribute it,” he explained.
“They managed to pull over $120m into the active trading range so they weren't surprised when they woke up to BTC $42k before the sale started.”
The analysis added that once the frozen selling walls disappeared, but 86 million dollars were sold in 30 minutes.
“I'm not sure if the party is over yet. A new bid of $30 million has been announced to continue the game,” he said.
Liquidity data from statistical resource CoinGlass, meanwhile, showed a buoyant environment for derivatives on the largest global exchange, Binance, after the December 4 Wall Street open of $42,420.
Long-term BTC price levels will remain the same as before.
Highlighting, there is no denying the psychological gravity of historical BTC price levels.
Related: Breakout or $40K Bull Trap? 5 things to know in Bitcoin this week
For Scott Melker, a businessman, analyst and podcast host who himself has seen many such lines in the sand, they are as important as ever.
“$42K is one of the most important levels for Bitcoin in history,” he told X subscribers on December 4.
The accompanying chart maps out key price points to watch out for, which have served as magnets since their inception – two years ago.
For example, $42,000 represents In the beginning of 2021, the rejected price, BTC/USD electric vehicle manufacturer Tesla added Bitcoin to its balance sheet.
“In the year In January 2021, the ‘Tesla' pump died at the top, and it did so countless times as support and resistance,” Melker explained.
Elsewhere on the chart are $31,860, $28,050 and $25,200 – all important support and resistance levels from 2021 onwards.
On the upside, $48,240, $51,790 and, naturally, the all-time high of $69,000 represent a psychologically relevant resistance level for market sentiment.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
