Bullish optimism returned to the cryptocurrency market on March 1 after most coins turned green and bitcoin bulls announced their intention to hold the $40,000 level as support going forward.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) has risen 20% from a low of $37,409 on February 28 to an intraday high of $44,951 on Tuesday.
BTC/USDT on the 4-hour chart. Source: Trading View
Here’s what many analysts are saying about the sudden bullish reversal in the price of bitcoin and what crypto traders can expect during this time of heightened global tensions.
Back to $34,000 “Not Excluded”
Prior to Tuesday’s price hike, bitcoin sellers had a strong grip on the market, according to a report by Delphi Digital, which released the following chart and noted that “after recent events unfolded, caution in the past two weeks has already proven to be the right thing to do.”
6-hour BTC/USD chart. Source: Delphi Digital
The key downside support to watch for is $34,000, according to Delphi Digital, based on how much support was seen there back in January when a hawkish Fed sent markets lower “before making an impressive rally.”
Delphi Digital SA:
“Since then, the price has not been able to maintain the momentum and returned to the region for $34,000 when Russia announced its invasion of Ukraine. The price has since jumped to $38,000 at the time of writing, but a re-consideration of the $34,000 support level certainly has not been ruled out. after “.
Scammers are full of hope
A more optimistic view was given by analyst firm Glassnode, which noted that “despite a correction of more than 50%” from the November highs, most buyers who entered the market during the August-November rally “did not liquidate their positions”.
Bitcoin URPD Feb 27. Source: glass knot
According to Glassnode’s analysis of the URPD calculation, which shows the distribution of coins supply according to the price that was moved down the chain recently, it appears that “the main redistribution is coming from investors who bought the $60,000+ chain” and recently sold in the $35,000 to $38,000 price range.
“This consumer behavior describes a market dominated by price insensitive holders who seem reluctant to liquidate their coins even if they are held at a loss. At the same time, large buyers have expanded significantly and represent a much smaller share of the investor pool than in May-July 2021.” ”
Related: 3 Reasons Why Bitcoin Price Hit $45,000 in March
Is Bitcoin Reversal Responsible?
The recent bullish view was provided by options trader pseudonym John Wick, who posted the following chart and noted that “you can see that we have a clear double bottom with a good sign of strength.”
BTC/USD weekly chart. Source: Twitter
in john wick
“We also have a confirmed reversal. Stops should always be set during signal week. I would be surprised if this setup cost us more than $60,000.”
Currently, the total cryptocurrency market capitalization is $1.93 trillion and the Bitcoin dominance rate is 43.2%.