The coin derailed the $42,000 mark to find resistance around $42,300 that capped the ascent and triggered some retreat
The price of bitcoin rallied to fresh April 2022 highs at the start of the week before steadying. The coin derailed the $42,000 mark to find resistance around $42,300 that capped the ascent and triggered some retreat. After peaking, the largest cryptocurrency by market capitalization has settled around $41,500 on Tuesday, trading under some pressure as the buying pressure has abated after a four-day rally.
The crypto market continues to show strength and bullishness in anticipation of the approval of a spot bitcoin ETF by the U.S. Securities and Exchange Commission. Also, market participants are looking toward the upcoming bitcoin halving event. SEC chair Gary Gensler said last month the commission would potentially consider as many as 10 bitcoin ETF filings. Market participants are confident the SEC could approve spot bitcoin ETFs as early as January.
The upside momentum is also fueled by growing expectations that the US Federal Reserve will soon cut borrowing costs. Investors are now betting the first rate reduction could come as soon as March, citing lower inflation and slowing economic growth.
Against this backdrop, the BTCUSD pair enjoys a spectacular rally, holding onto gains since mid-October. In the immediate term, the coin needs to hold above the $41,000 figure in order to stay afloat and resume the ascent after a pause. On the upside, the nearest resistance arrives around $41,900, followed by the $42,300 mentioned highs, a decisive break above which would pave the way towards $43,000.
Should bitcoin come under more severe downside pressure in the near term, the price could challenge the $41,000 mark, followed by the $40,800 intermediate support on the way towards the $40,000-$39,900 region.
