Global financial markets continued to face an uphill battle on April 7 following recent hawkish comments from the United States Federal Reserve hinting at a rapid rise in interest rates as one course of action to help curb rampant inflation.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) hit an overnight low of $42,744 following remarks by the Fed and has since entered a consolidation pattern near support at $43,500.
Here’s a look at what several analysts in the market are saying about the outlook for Bitcoin at this level and which support and resistance zones to keep an eye on moving forward.
Bulls need to hold support at $43,100
Insight into what comes next for Bitcoin based on its previous performance in this zone was touched on by market analyst and pseudonymous Twitter user Rekt Captial, who posted the following chart highlighting the significance of the $43,100 support level.
Rekt Capital said,
“If history repeats and BTC continues to maintain the ~$43,100 level as support… then BTC could once again enjoy upside into the high $40,000s and even as far as the low $50,000s.”
BTC and the NASDAQ
The correlation between price movements for Bitcoin and the NASDAQ was highlighted in the following chart posted by filbfilb, co-founder of trading suite DecenTrader, who noted that “Since 2019, multiple selloffs at all-time highs on the NASDAQ have resulted in sharp selloff, which saw BTC also correct at the same time.”
“What followed was an inverse head and shoulders bullish reversal, confirmed by testing the 50 DMA, and ATH on both legacy and BTC; a possible scenario ahead.”
Further evidence to support a possible impending breakout for BTC was provided by crypto analyst and pseudonymous Twitter user TAnalyst, who posted the following chart looking at the price action for BTC when a bounce on the price oscillator occurs.
“April 2012 price oscillator bounce, then a bull run. March 2020 price oscillator bounce, then a bull run. February 2022 price oscillator bounce… I’ll [leave it to] you to conclude.”
Related: Bitcoin sentiment falls into ‘fear’ as BTC price action hits $42.9K breakdown target
A breakout to $57,000 or a pullback to $36,000
The loss of support at $44,700 was “expected after losing that recent low” according to crypto trader and Cointelegraph contributor Michaël van de Poppe, who posted the following chart detailing the breakdown from $46,881.
“Currently at an important breaker. If we hold this, all good, seems ready for another leg to $57,000. If we don’t, then I’m seeing a test around $36,000.”
The overall cryptocurrency market cap now stands at $2.015 trillion and Bitcoin’s dominance rate is 41.2%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.