empty
10.02.2022 07:27 AM
BTC to gain bullish momentum despite correction

The crypto market is experiencing a downward correction after a prolonged upward movement. Many altcoins have already declined. Bitcoin managed to hold at the $42k level. This is positive news for crypto investors. At the same time, there is a possibility of further correction of BTC. Notably, the continuation of the downward movement is necessary for the crypto and the altcoin markets.

As of 17:00 on February 9, bitcoin reached the support level of $42.7k. Trading volumes remain high but there are more short positions now. BTC managed to consolidate above $42k. entering the sideways channel. Bitcoin has been rising for a week. As a result, the market became overheated.

Given the strong bullish bias, there are two possible scenarios. The BTC price may continue trading flat. Then it will consolidate above $46k. Shortly after, it is likely to rebound and hold at around $39k-$40k.

This image is no longer relevant

The second scenario implies a decline to the resistance level without an attempt for a reversal. The price will escape the narrow range and resume the downward movement. BTC will return to the same range where traders with speculators are likely to make a profit.

This image is no longer relevant

The final outcome in both scenarios will be a return to the $40k-$50k range and further recovery after a correction. I have already said that this reduction is necessary to complete the formation of the figure of technical analysis inverted "head and shoulders". I have already said that a correction is necessary for the instrument to complete the formation of the "head and shoulders" pattern. According to this scenario, there will be an upward movement to $56k with temporary corrections. The main condition is consolidation at $41k or the formation of the pattern will not take place.

This image is no longer relevant

There is also an upward pattern "cup with a handle" on the 4H chart. It indicates a rise to $56k-$58k. Therefore, in the worst-case scenario, bitcoin will slide into a new round of correction, resuming an upward movement to $56k-$58k.

This image is no longer relevant

Consolidation of BTC at $42k-$43k will have a positive effect on the entire market. If it manages to enter the sideways channel, it will fuel the recovery of the altcoin market. The scenario may come true only if BTC holds at the support zone. Otherwise, the altcoin market will also enter the correctional phase. The cooling of the market is likely to begin.

This image is no longer relevant

Artem Petrenko,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

BTC/USD Analysis – April 22nd: The Moment of Truth

The wave structure on the 4-hour chart for BTC/USD is quite clear. After completing an upward trend consisting of five full waves, a downward segment began forming, which currently appears

Chin Zhao 11:49 2025-04-22 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 22

Bitcoin Returns to the $88,000 Zone, but Ethereum Is Facing Challenges Yesterday's sell-off during the U.S. session, once again triggered by a decline in American stock indices, was offset

Miroslaw Bawulski 08:18 2025-04-22 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 21

Bitcoin and Ethereum, having spent the entire weekend moving sideways within a range, surged sharply during today's Asian session. The rally was triggered by rumors that U.S. Federal Reserve Chair

Miroslaw Bawulski 09:03 2025-04-21 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 18

Bitcoin and Ethereum remain within their sideways channels, and the inability to break out of these ranges could jeopardize the prospects for a broader recovery in the cryptocurrency market. However

Miroslaw Bawulski 09:00 2025-04-18 UTC+2

Interest in Bitcoin and Ethereum Is Returning

While Bitcoin and Ethereum still struggle to regain strength and re-enter a bullish market—constantly alarming investors and traders with sharp declines toward the lower bounds of the sideways channels they've

Jakub Novak 06:52 2025-04-18 UTC+2

Technical Analysis of Intraday Price Movement of Litecoin Cryptocurrency, Thursday April 17, 2025.

After successfully exiting the Ascending Broadening Wedge pattern on the 4-hour chart of the Litecoin cryptocurrency followed by the appearance of Divergence between the Litecoin price movement and the Stochastic

Arief Makmur 06:40 2025-04-17 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 16

Pressure on the cryptocurrency market returned yesterday after traders and investors triggered a sell-off in the U.S. stock market. As I've noted repeatedly, the correlation between these two markets

Miroslaw Bawulski 09:01 2025-04-16 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 15

Bitcoin strengthened its position fairly well, nearly reaching the 86,000 level. Ethereum also showed gains but lost them by the end of the U.S. trading session. With easing tensions over

Miroslaw Bawulski 09:08 2025-04-15 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 14

Over the past weekend, Bitcoin and Ethereum demonstrated decent resilience, maintaining a chance for further recovery. While from a technical standpoint, those chances may appear rather slim, trading within

Miroslaw Bawulski 09:12 2025-04-14 UTC+2

Bitcoin – Technical Analysis Overview

Last trading week, the market indicated a potential opportunity for bulls to regain control. Whether this potential is realized now depends on whether the bulls can exit the previous consolidation

Evangelos Poulakis 06:37 2025-04-14 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.