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The price of Bitcoin (BTC) failed to break above the psychological resistance of $ 50,000 at the start of the weekend and fell below the $ 48,000 level on March 6.
Now traders are watching if BTC / USD can break above the $ 50,000 level to resume the bullish cycle. Conversely, a fall below recent lows below $ 46,000 will likely open the door to new lower lows, which could then pose a threat to the uptrend that has been in place for nearly a year, at least in the short and long term. middle term.
Pseudonym trader Rekt Capital pointed out similar price points to watch out for. If BTC fails to maintain current levels above $ 46,000, the trader expects Bitcoin to be somewhere in the area between $ 38,000 and $ 45,000, while Bitcoin has posted lows of the latter. days.
“BTC lows hold until they don’t,” he wrote. “Each subsequent reaction of the January HL was less and less important. It could be the same now. Better safe than sorry by preparing for a possible rupture of this NS.”
#BTC Higher bass hold
Until they don’t
Every subsequent reaction from the January HL was lesser and lesser
It could be the same now
Better safe than sorry by preparing for a possible failure of this NS
And if this failure were to occur – $ BTC go bottom on this retrace pic.twitter.com/VUzgXbVkCX
– Rekt Capital (@rektcapital) March 6, 2021
A major factor that is probably behind the current downward pressure on prices is the increase in whale activity. CryptoQuant data shows an increase in large trades to exchanges on March 6, although miner activity remains relatively low.
As shown in the graph below, previous increases in remittances for whales coincided with the drop in the price of Bitcoin on March 3-4.
Macroeconomic headwinds for Bitcoin
As Cointelegraph reported, Bitcoin is also facing downward pressure from macroeconomic headwinds. A sharp rise in yields on 10-year U.S. Treasuries and a pullback in tech stocks, in particular, is weighing on cryptocurrency prices as investors shy away from risky assets.
Meanwhile, the dollar currency index, or DXY, broke through technical resistance, hitting the highest levels since November 2020.
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 the general weakness of the markets in the short term,” he explained. “So far $ 50,000 is banned for Bitcoin.”
However, Bitcoin, as well as gold, could experience a bit of a breather as DXY and Treasury yields approach their own levels of technical resistance.
“I think the yields will peak soon, including the DXY,” van de Poppe explained. “Both are in resistance zones, which means we should be close to an upper formation on these two, but also lower formation for Bitcoin and gold relatively soon.”
He added:
March is often a bad month for the markets and history repeats itself. So on a macro level, we are still bullish on the cycle and are heating up for the continuation, despite the recent interest in yields. “
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