Bitcoin and the US indices once again demonstrate a close correlation. Yesterday, the NASDAQ and S&P 500 indexes showed growth, which had a positive impact on the BTC price as well as the entire cryptocurrency market. The price of Bitcoin managed to return above $40000. At the time of publication, the BTC/USD pair is trading above 41000.
The price of Bitcoin is rising thanks to the influx of capital into technology stocks. However, this does not offer a chance for a big raise soon. Most likely, Bitcoin will trade in the range of $38000 to $48000 in the current cycle. This range is determined as equities will have limited gains this earnings season, given heightened geopolitical and inflationary risks for US corporations.
The return of the BTC price above $40000 is a positive signal for the bulls. This signal gives grounds to expect a return to the area of 45000. On the BTC/USD chart, you can see that a “double bottom” pattern has formed. It confirms the forecasts of a possible return of the BTC/USD pair to the 45000 area. However, before that, the BTC/USD pair will have to overcome the nearest resistance in the area of 41350. A break of this level will allow the pair to rise to the next resistance in the 41500 area. After breaking these resistance levels, the rise in the price of Bitcoin may accelerate. In this case, the pair may reach the level of 42500.
As we can see, today, the BTC/USD pair has already made an unsuccessful attempt to overcome the resistance around 41350. If the second attempt is also unsuccessful, the BTC/USD pair risks approaching 41000. A break of this level will send the BTC/USD pair to the 40550 support area. Breakdown of this level will lead to a new decline below 40000.
