Bitcoin has risen to 42k

Bitcoin has been on the move over the last 12 hours, and currently not showing signs of rejection. On the lower timeframes Bitcoin has effectively build a fresh support region around $38,000. The fact that price has been building fresh support around this level is not without good reason, as this has proven to be a region of volume accumulation over an extended period of time, as we can see in the volume distribution below.

Overall Bitcoin remains rangebound on the higher timeframes, and from the local support of $38.000 that has been build we have seen bullish demand showing up as broke to the upside from that zone, which, due to the lack of volume in between rose quickly to the next zone of resistance. Now attempting to trade through the highest volume node sat at the $42,000 region, if BTC can be reclaim this resistance level as a support level, bitcoin can trade to the upper side of the profile sat at around $45,000

However, if we fail to test the $42.000 region as support and instead trade it back below the level, a new effective resistance level will be created. The fact we rose up very quickly, would then pave the way for a quick decline back to the $38,000 support zone.

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