The bulls managed to keep the price of Bitcoin above $41000. The level of 41250 provided enough support and saved Bitcoin from a deep correction. Today, the bulls managed to bring the price of Bitcoin back above $42000. And at the time of publication, Bitcoin is trading around 42200. This is a good sign for Bitcoin as it has broken the nearest resistance level. However, now on the way to recovery, the BTC/USD pair will face resistance around 42400. This is an important level, since here is the upper limit of the downward channel, which has been forming since the end of December. Breaking this level will increase the chances of Bitcoin to pass the next important resistance level of 43200. If the BTC/USD pair manages to rise higher, we can talk about the beginning of a recovery and build plans for a return to $44000.
If the bears push the price of Bitcoin below $42000 again today, this will confirm that the BTC/USD pair is trading in a downward price channel. In this case, we consider the movement of the BTC/USD pair to the support area of 41250. A break of this level will send the BTC/USD pair to the 40500 area, where the pair will receive enough support.
