Bitcoin Slips Back To 38k, Further Downside Incoming?
March 08 2022 - 4:58PM
NEWSBTC
Bitcoin slide to $37,000 on March 7 sparked some purchasing
interest, resulting in a price bounce to $39,000 on March 8.
Surprisingly, the upward sloping trendline that served as an
accumulation zone for traders in 2022 was the origin of the upside
retracement move. Price Fall Signals Retracement Bitcoin price
established another lower high on the 4-hour chart, showing that
bears are still in control and that more loss is likely. Today is
set to provide a breath of relief and let some steam out of the
pressure cooker that is Ukraine, with global markets still anxious
and on edge. As this favorable news is picked up and turned into
another round of bullish uplift for the cryptocurrency, expect more
decompression going into the U.S. session. Over the last few days,
bitcoin’s price has suffered a significant retreat from its latest
major swing high of $45,600. The initial decline of roughly 15%
sent BTC/USD to $39,000, and the pair was tested further on the
negative over the weekend. BTC/USD 4-hour chart. Source:
TradingView Despite being mildly oversold at 45.6, the 14-day RSI
appears to be headed for the 47 level, which has previously served
as resistance. If price strength reaches this level, BTC/USD will
likely trade towards the $40,000 barrier, with a breakout likely to
rekindle bullish sentiment. Despite bears probing the downside
again yesterday, bearish momentum has slowed. Related Article |
Risk Aversion Pulls Crypto Market Down, Bitcoin Still Below $40K
Bitcoin May See Upside In his latest view, Rekt Capital noted the
successful retest of the trendline, speculating that the move might
push Bitcoin above $43,100 in the near future, assuming it breaks
above the green dashed diagonal resistance shown in the chart
below. BTC/USD weekly price chart. Source: Rekt Capital,
TradingView Throughout Q1/2022, Bitcoin remained trapped in a
trading range — between $34,000 and $45,000 — indicating an interim
positive outlook. BTC was able to withstand significant selloff
pressure as a result of persistent macroeconomic and geopolitical
concerns, such as expectations of rate hikes and the armed conflict
between Russia and Ukraine. Last weekend, Filbfilb, the creator of
trading platform DecenTrader, said that “Bitcoin is rangebound on a
macro level,” but that its long-term structure suggests it would
break to the upside. “In the immediate term, if the 50 DMA and
3-day level can prove to be supported, a retest of the $43K and
high timeframe level could occur,” said Flibflib, adding that a
further break above Bitcoin’s yearly pivot level of $48,000 would
be “very significant and implicit of a fundamental change.” Related
Reading | Crypto Markets Slightly Recover After Weekend
Decline Featured image from iStock Photo, chart from
TradingView.com
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