BITCOIN → Why the 42K level is important to us
Updated
BTCUSD is not reacting to the negative news about Grayscale transfers to exchanges, and and the recovering interest allows the market to redeem the correction a bit. 
Pic: Idea: BITCOIN → Why might the price drop to 34K before halving?
The correction phase is not over, as the price has not yet left the boundaries that can confirm the end of this phase.
The market is recovering from a false break of the 40181 range support. Long-squeeze eliminated the buyers' orders in the support zone and within the range the price is testing one of the important 42K levels.
At the same time:
- BTC for the second few days did not react to the negative news about Grayscale transfers to exchanges
- Flagship absorbed the news that the US government intends to sell the coin for $130 million
- Increased ineterest to BTC from traders and investors in China, who are looking for salvation in crypto instead of unstable stock and real estate markets within the country.
Pic: Important level. Demonstration on the chart
Interest in bitcoin is high, but there is quite an important event ahead for the market. Halving is expected in early April and statistically the market is shedding ahead of a possible rally. Whales have an interest to get in on more favorable positions, but at the same time the positive fundamental and technical background attracts investors even at current price levels.
Price positioning relative to the 42000 level will determine the future outlook for the market.
The consolidation of BTC above 42K may form the potential for strengthening the price to the range boundary - 44500, and the consolidation of the price below 42K will continue the decline to retest the support.
Pic: Value of the level for further perspective
When will the correction end?
At the moment this phase is still active, a break of support 40700 - 41K will form a continuation of the decline, which in the medium term may head towards 48K, then 37K and 34K, where there is a huge pool of liquidity from buyers. The market may be interested in liquidating some passengers before further rally.
But, in the current position, the correction phase may be over as the asset still has high interest. Breakout and consolidation of the price above 42K may confirm the market's intentions that it is ready for further growth in the near future, and Breakout and consolidation of the price above 44.5 - 45K will confirm the end of the correction. In this case the further target will be 48.2K and higher.
BTC1! BTC 
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Note
Retest of MA-50 on D1
Local range 43246 - 41639 is being formed.
For growth the price needs to overcome MA-50 and resistance of the local range.
Note
A false breakdown of 42K is formingThe price continues to be in the area of retest.
Note
BTC tests 43118 on optimism
The price will be able to break the level quite easily if the bulls continue to actively test it
Note
Retest 44K
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