Trader: Bitcoin Must Hold above $42k to Validate Uptrend
It is a battleground for Bitcoin traders at the moment.
While there have been flashes of strength, Bitcoin is under immense pressure at the time of writing. One trader notes that it is vital for BTC bulls to sustain prices above $42k.
Notably, the $42k is a critical psychological level for Bitcoin as it flashes with January 2021 highs—a level that was broken as BTC eventually surged to over $64k in H2 2021. If that happens, Bitcoin prices may recover in the short term.
However, as BTC prices trend within a tight trade range, a drop below $2k and $40k might see the coin's prices crater down to $30k.
In that case, price action would fill the CME gap of months ago in a retracement from August 2021 highs.
Then, the trader says, there could be a refreshing bounce back, and BTC could gallop higher in a buy trend continuation.