If Bitcoin can hold $42,000 as support, it 'likely to start a new rally'

Cryptocurrency markets remained volatile as tensions in Ukraine remained and investors renewed focus on what the Federal Reserve might do to counter rising inflation and market volatility.

Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) has been hovering around the $44,000 support level, with traders hoping that an inverse head and shoulders chart pattern will lead to a sustained bullish breakout.

As global issues ranging from inflation to war continue to loom large in the cryptocurrency market, several analysts in the market are keeping a close eye on future developments.

Volume Balance Shows Bullish Reversal

Market analyst and anonymous Twitter user "IncomeSharks" provided insight into what might happen in Bitcoin's futurebased on its On Balance Volume (OBV) , a momentum indicator that uses volume to predict asset prices The change. "IncomeSharks" has come up with the following bullish reversal chart highlighting the indicator.

The analyst said:

"People tell me we haven't bottomed out yet... that's almost more bullish than the last time we went from $30,000 to $60,000. Double bottom, very pronounced bullish V. Price action is just noise, people listening to crypto Twitter Too much."

Bullish if BTC Holds $42,000

A similarly bullish view on Bitcoin’s current price action has been offered by analyst and anonymous Twitter user “CredibleCrypto,” who posted the lower time frame below, suggesting Bitcoin has more room to run.

CredibleCrypto says:

"Strong up, minor pullback, sustained. As long as $42,000 holds the LTF wave structure, it's a sign we're likely to start the next push higher."

Bitcoin price could rise by 25%

A final bit of analysis was provided by market analyst and Twitter user Caleb Fransen, which also takes BTC's momentum into account, posting the following chart, which includes the Williams %R Oscillator, a momentum indicator that measures overbought and oversold levels .

According to Fransen, “when there is a complete oscillation from “oversold” to “overbought,” it signals momentum advancing,” which has happened six times for Bitcoin since January 2020.

Fransen said:

"After a weekly push, the average 1-month return is +25%. Williams%R is currently trying to complete a 4-week momentum push. I'd be very bullish if Bitcoin could get a strong weekly close."

Currently, the total market capitalization of cryptocurrencies is $1.999 trillion, with Bitcoin dominance at 42%.