Bitcoin (BTC<\/a>)\u00a0price flashed bullish for a brief moment, possibly tricking some traders into opening longs, before plunging back below $40,000 in evening trading hours. Let’s take a quick look at what traders think about the current price action and whether or not today’s brief break out was nothing more than test of overhead resistance.<\/p>\n Analysis of Bitcoin’s weekly price action was discussed by crypto trader and pseudonymous Twitter user \u2018Rekt Capital\u2019, who posted<\/a> the following weekly chart noting that \u201cBitcoin is now hovering below the green 21-week and blue 50-week bull market exponential moving averages (EMA).\u201d<\/p>\n Rekt Capital said, <\/p>\n \u201cBreaks beyond these EMAs have preceded immense upside. Turn these Bull Market EMAs into support and we’ll see Bull Market momentum resume.\u201d<\/p><\/blockquote>\n Despite all the macro factors affecting global financial markets, Bitcoin remains \u201cstuck in the middle of its $35,000 to $45,000 range according to David Lifchitz, managing partner and chief investment officer at ExoAlpha. Lifchitz noted that BTC has behaved more like a risk asset than an inflation hedge. <\/p>\n Evidence for this can be found by looking at the highly correlated price action for BTC and the Nasdaq over the past few months. <\/p>\n According to Lifchitz, if Bitcoin’s \u201ccorrelation with speculative tech stocks remains high,\u201d the planned series of interest rate hikes by the U.S. Federal Reserve will at some point \u201cbecome toxic to risk assets\u201d which could translate into declines in the price of Bitcoin. <\/p>\n Overall, Lifchitz suggests that for investors who are convinced of its long-term potential, \u201cBitcoin should be actively traded while it bounced up and down in the range.\u201d <\/p>\n Related: <\/em><\/strong>From beer to Bitcoin as legal tender: A BTC education in Roat\u00e1n<\/em><\/strong><\/a><\/p>\n According to independent market analyst Micha\u00ebl van de Poppe, $42,300<\/a> is the crucial level that needs to be overcome. <\/p>\n Van de Poppe said, <\/p>\n \u201cThis is also a daily breaker. If it breaks, I’m assuming a new test of $46,000 is around the corner and possibly $50,000.\u201d<\/p><\/blockquote>\n Further evidence that suggests BTC could soon trend higher was provided by analyst and pseudonymous Twitter user \u2018Plan C\u2019, who posted<\/a> the following chart looking at the confluence of several analytical measures for Bitcoin price. <\/p>\n Plan C said, <\/p>\n \u201cThe last 4 times the blue & purple lines were below the green line for this long the Bitcoin bottom was already in.\u201d<\/p><\/blockquote>\n The overall cryptocurrency market cap now stands at $1.881 trillion and Bitcoin\u2019s dominance rate is 41.2%.<\/p>\n The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<\/div>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/17e67b3b-986d-4bf5-8b94-dbbe6f9a9070.png\")
Resistance remains at key moving averages<\/h2>\n
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Bitcoin’s correlation to tech stocks provides insight<\/h2>\n
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$42,300 is a crucial level to watch<\/h2>\n
![\"\"](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/186337b6-f203-4fdd-a524-9bcb0de54a20.png\" "\\"\\"")
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