Bitcoin continues to hover around $42,500 as it is facing huge turbulence in sustaining itself above the gains. Regardless of the bearish attempts to drag the BTC price lower, the bulls can maintain the level close to the gains. However, the selling pressure has reduced considerably in the past few days as bulls are trying hard to regain momentum. This suggests a significant price action could be on the horizon, while the direction of the breakout remains unclear.
Bitcoin Bulls Fall Short of Strength
After going through capitulation, depression, and disbelief, the BTC price just entered the hope phase. This transition has occurred due to the positive sentiments surrounding the approval of the Bitcoin Spot ETF. Despite the market sentiments flipping, no major impact is seen on the BTC price. If technicals come into play, it suggests Bitcoin is due for a fine upswing, but for now, an extended consolidation is what it could offer.
As the Bitcoin price regained $42,000, investors became hopeful of the impending trend and expected a fresh upswing to $43,000 if the bulls remained active. However, they continue to remain uncertain about the impending trend as huge variations in the active address count are observed.
The BTC active address count is the number of addresses contacting the network to perform any transaction. The levels have been constantly making new lows since the beginning of the month. With the recent drop, the address count reached the levels it traded at in May 2023, where the BTC price was stuck in a steep bearish trend. The current trade setup also displays a narrow consolidation, indicating chances of a significant pullback to $41,000 soon.
What’s Next for BTC Price: Will It Reach $45,000?
In the larger time frame, the Bitcoin price is trading within a rising parallel channel, accumulating gains to test the upper resistance levels. The price is currently consolidating around the 0.5 FIB level in the weekly chart. The bulls appear to be waiting for a major catalyst that may propel the price beyond the immediate barrier, which may elevate the levels beyond the interim resistance at $46,700.
The upcoming Spot ETF approval may be considered a major catalyst for igniting a fine rally beyond the consolidation. However, the price continues to remain within the elevated range, which could keep up the bullish momentum. The next major resistance in the short term is around $43,100, which may be achieved as the price surpasses $42,850. In the case of a pullback, levels around $41,500 may offer a base, while $40,500 can be considered a strong support zone.
Credit: Source link