![Bitcoin Price Reclaims $42,000, is BTC Return to $45,000 Next?](http://media.assettype.com/analyticsinsight%2Fimport%2Fwp-content%2Fuploads%2F2024%2F01%2FScreenshot-2024-01-19-143050.webp?w=480&auto=format%2Ccompress&fit=max)
Bitcoin (BTC) price has broken through $42,000 on Jan. 27 as the market recovers from the aftermath of the spot Bitcoin ETF-linked sell-off.
The total crypto market is back above the $1.6 trillion mark after rising 4.5% over the last 24 hours.
Data from CoinMarketCap and TradingView shows Bitcoin climbed rapidly from a price of $39,545 on Jan.26 and gained 7.7% to reach a high of $42,830 on Jan. 28. At the time of writing, BTC was exchanging hands at $42,157, down 0.45% on the day.
Meanwhile, the market has been experiencing a slowdown in outflows for Grayscale's GBTC spot ETF.
According to data from BitMEX Research, GBTC saw outflows of $95.1 million on the 11th day of spot Bitcoin ETFs trading on Jan. 26, down from $394.1 million on Jan. 25 and $429.3 million on Jan. 24.
This marked the fourth consecutive day of a slow down in outflows from GBTC.
Will Bitcoin price break through $45,000?
The barrier at $45,000 has proven to be historically stiff for Bitcoin bulls, making it a level of interest and which market participants pay attention to.
However, the moving average convergence divergence (MACD) indicator's signal points to key reversal points that could impact Bitcoin's price action in the upcoming weeks. This signal was sent on Jan. 28 when the 12-day exponential moving average (EMA) crossed above the 26-day EMA suggesting that the market conditions had turned positive.
The 50-day EMA at $41,786 provides a significant initial support. Increased buying from this zone could trigger massive buy orders, potentially bolstering the big crypto toward the $45,000 psychological level. This would represent a 6% ascent from the current price.
BTC/USD daily chart. Source: TradingView
Conversely, the movement of the MACD below the zero line in the negative region suggested that the market conditions still favoured the downside. As such, a daily candlestick close below the 50-day EMA would suggest the inability of the buyers to sustain the higher levels.
Key levels to watch on the downside are the 100-day EMA at $39,529 and later the $38,000 major support level. Further down, BTC may find a breathing zone between the 200-day EMa at $35,764 and the $35,000 psychological level.
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