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Bitcoin is About to Clear a Crucial Resistance; What Analysts are Saying

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Cole Petersen



  • Bitcoin has seen some mixed price action as of late, with bulls currently trying to form a breakout rally as the crypto pushes towards key resistance
  • It did face a somewhat strong rejection earlier today that has since led it lower, which could be a grim sign for what comes next
  • One trader said in a recent tweet that BTC’s near-term outlook likely depends wholly on whether or not it can continue pushing higher and break this resistance
  • A continued decline could lead to serious downside in the days and weeks ahead, potentially sparking a capitulatory selloff
  • This remains a distant possibility, however, as bulls appear to be gaining increased strength

Bitcoin and the entire crypto market have seen mixed price action as of late, with both bulls and bears being unable to gain any clear control over the crypto’s price action.

Buyers have been showing some signs of vitality as of late despite a bearish sentiment across social media, which could mean that an upwards expansion phase is coming.

For this possibility to be confirmed, bulls must shatter one key resistance level that has been holding strong throughout the past few days and weeks.

Bitcoin Gains Momentum But Still Faces Intense Resistance

At the time of writing, Bitcoin is trading up just under 4% at its current price of $34,720, which marks a notable rise from recent lows of $29,000 that were set last week.

The crypto has been rising ever since it broke below $30,000, which has continued to be a bedrock support level for the cryptocurrency.

BTC rejected last night at a key level that analysts have been watching for quite some time. A continued downtrend could signal that significant losses are imminent.

Analyst Claims BTC Still Has Yet to Break Key Resistance 

Despite the strength seen overnight, analysts are now noting that Bitcoin could be poised to see further downside.

One trader explained that he is bearish until BTC breaks above a trendline that was tested during the overnight pump. He anticipates a move down to the low-$20,000 region in the mid-term.

“At key resistance now. If bulls are strong enough and clear current resistance i’ll flip bias to bullish.”

Bitcoin

Image Courtesy of Wolf. Source: BTCUSD on TradingView.

The coming few days should provide some serious insight into where the aggregated crypto market will trend in the mid-term, as it all depends on Bitcoin.

Featured image from Unsplash.
Charts from TradingView.





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Bitcoin

Bitcoin traders worry as BTC price remains pinned below $50K

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Cointelegraph By Allen Scott

The price of Bitcoin (BTC) has failed to break above the psychological $50,000 resistance going into the weekend and has dropped below the $48,000 level on March 6. 

BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview

Now traders are watching whether BTC/USD can break above the $50,000 level to resume the bull cycle. Conversely, a drop below the recent lows below $46,000 will likely open the door to new lower lows, which may then pose a threat to the bull run that has been in place for almost a year, at least in the short to medium term. 

Pseudonymous trader Rekt Capital pointed out similar price levels to watch. If BTC fails to hold the current levels above $46,000, the trader expects Bitcoin to bottom somewhere in the area between $38,000 and $45,000 despite Bitcoin posting higher lows in recent days. 

“BTC higher lows hold until they don’t,” he wrote. “Each subsequent reaction from the January HL was lesser and lesser. Could be the same now. Better to be safe than sorry by preparing for a potential breakdown from this HL.”

One major factor that’s likely causing the current downward pressure on price is an uptick in whales’ activity. Data from CryptoQuant shows an increase in large transactions to exchanges on March 6, though miners’ activity remains relatively low. 

As shown in the chart below, previous upticks in whales moving funds to exchange coincided with drops in Bitcoin price on March 3-4.  

Whales (blue) vs. Miners (orange) vs. BTC price (red). Source: CryptoQuant

Macroeconomic headwinds for Bitcoin

As Cointelegraph reported, Bitcoin is also facing downward pressure from macroeconomic headwinds. A sharp spike in 10-year U.S. Treasury yields and a pullback in tech stocks, in particular, are weighing on cryptocurrency prices as investors flee risk-on assets.

Meanwhile, the Dollar currency index, or DXY, has broken through technical resistance, hitting the highest levels since November 2020. 

BTC (blue) vs. DXY (orange). Source: Tradingview

Cointelegraph Markets analyst Michael van de Poppe points out that Bitcoin’s downtrend remains intact after the latest attempt to break $50,000 failed. 

“This means that the trend is still down and overall weakness on the markets in the short term,” he explained. “$50,000 is so far a no-go for Bitcoin.”

However, Bitcoin, as well as gold, may see some respite soon as the DXY and Treasury yields are nearing their own technical resistance levels.  

“I believe that the yields are getting topped out relatively soon including the DXY,” explained van de Poppe. “Both are in resistance areas, which means that we should be close to a top formation on these two, but also on a bottom formation for Bitcoin and gold relatively soon.”

He added: 

March is often a bad month for markets and history repeats itself. So macro-wise, we’re still bullish on the cycle and heating up for continuation, despite the recent interest in yields.”