Will Binance Coin Spikes lead to $4200 Bitcoin Price

Throughout the past month, many traders have emphasized the importance of the $4,200 resistance level for Bitcoin.

Bitcoin cleanly broke out of $4,000 in February but struggled to test the $4,200 level and as soon as BTC came close to breaching out of $4,200, it plunged below $3,700.

Following a plunge in price of Bitcoin from $4,200 to $3,700, economist Alex Krüger ‏explained on February 24:

Today’s crypto dump was a simple correction. Prices had just gone up vertically for 16 days without a pullback. Take ETH for example: +38% without a pullback. Levered longs piled up. People FOMOed. BTC reached the first strong resistance ($,4200) and gravity kicked in.

Hence, while an upside movement above $4,200 could open Bitcoin to a potential rally above the $5,000 mark until the $4,200 level is broken, the asset remains vulnerable to a pullback to the mid-$3,000 region.

On the technical side, according to a cryptocurrency technical analyst with an online alias “Mayne,” Bitcoin has found strong support at $3,700.

If the dominant cryptocurrency manages to break out of the $3,900 to $4,000 range in the near-term, the analyst sees the asset engaging in an extended upside movement, potentially to $4,400.

“BTC found support at the yearly open and is now rejecting from the breaker I wanted to short at, ended up being impatient and shorting lower. Above the breaker, BTC looks good for $4200-$4400. If we reject and lose $3700 I wouldn’t want to be long anything,” the analyst explained.

But, as CCN reported throughout the past two weeks, the strong performance of major crypto assets and tokens have lifted the pressure on Bitcoin.

Su Zhu, the CEO of Three Arrows Capital, stated that the last time Litecoin was valued at $57, Bitcoin was $6,500.