Bitcoin price eyes a bounce to $42,000 as BTC bulls stop the bleeding

Bitcoin price dropped 9% as it failed to pierce the weekly supply zone, ranging from $45,550 to $51,860.
The downswing is bouncing off the weekly support level at $39,481 and shows promise of heading back to $42,748.
In some cases, BTC could retest the $36,398 to $38,895 demand zone before triggering a retaliation.

Bitcoin price rallied exponentially from February 3 to 10, piercing a critical resistance barrier. However, this uptrend failed to sustain after a second attempt, leading to a downswing. Going forward, BTC might head toward a stable support level before triggering a brief throwback.

Bitcoin price approaches a midway point

Bitcoin price began its rally on February 3 and gained 26% in just a week. This uptrend pierced the weekly supply zone, extending from $45,550 to $51,860. This attempt was foiled as bulls failed to sustain, leading to a minor retracement below the immediate support level at $39,481.

The recovery from this correction fell short, leading to a 10% crash that occurred over the past three days. As Bitcoin price bounces off the weekly support level at $39,481, there is a good chance a new throwback to $42,748 could begin.

If the buyers continue to build up bid orders, there is a good chance Bitcoin price could revisit the weekly supply zone’s lower limit at $45,550.

While this scenario is optimistic, an alternative outlook would suggest that BTC might revisit the daily demand zone, extending from $36,398 to $38,895 before triggering the run-up to $42,748. Either way, investors can expect a minor uptrend to begin anytime soon.

BTC/USDT 4-hour chart

Things could change drastically for Bitcoin price if BTC slices through the daily demand zone’s lower limit at $36,398. This move would set up a lower low, signaling a further downtrend is likely.

In this situation, BTC bulls have one chance to recover as it tags the $34,752 support level. Failing to hold above this barrier will invalidate the bullish thesis and trigger a potential crash to $29,100 or lower.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram