Bitcoin (BTC) has halted its bullish rally in recent weeks as the price corrected from a full-time high of $ 58,000 to around $ 43,000.
Several arguments were found for the decline, including the sale of miners and whales. Another important reason for this correction is the sudden rise in interest rates worldwide.
The downsizing remained unchanged at $ 58,000
Bitcoin’s two-hour chart shows a clear downward trend from February high of $ 58,000. Since then, bearish support / resistance has returned, indicating further weakness in the short term.
This bearish support / resistance reversal occurred at $ 55,000 and $ 52,000 levels, with the latter currently serving as a major resistance area.
In recent days, the Bitcoin price tried to break this resistance, but failed to do so. After this failed outbreak, a re-examination of key levels seems inevitable.
From this perspective, Bitcoin’s critical support range varies between $ 48,300 and $ 48,800. As long as they have it, a reconsideration of the $ 52,000 range can take place.
Failure to maintain the support area and low area (green zone) will probably be subject to new testing. Thus, the Bitcoin price correction does not seem to be over. March is also not the best period for Bitcoin, so today’s price drop should not be surprising.
March has historically been a bad month for cryptocurrencies
The weekly table Bitcoin shows a clear bullish trend. Therefore, short-term corrections should not be classified as reversals of a downward trend. Each bullish cycle has periods of consolidation and rebound to create more strength for the next impulsive wave in the market.
Therefore, 30-40% corrections often occur during Bitcoin bull cycles, and this should also be taken into account in this decline.
Historically, March has been a terrible month for cryptocurrencies, since recent years have shown general weakness in this period. These corrections often end with the 21-week moving average because they are an important indicator for tracking bullish and bearish market momentum.
As long as the bitcoin price remains above the 21-week moving average, the bullish move is likely to continue. The average 21-week moving average is currently $ 29,000, but in a few weeks it will be between $ 33,000 and $ 35,000. As long as bitcoin remains above the $ 30,000 range and the 21-week moving average, investors should not be worried about the general bullish trend.
The return rises, which causes the markets to weaken
The main cause of Bitcoin and gold weakness is shown in this chart. Global 10-year bond yields are at their highest level in one year. This pushes investors out of assets such as bitcoin and gold.
In light of this, the return was good, but the dollar also showed signs of recovering.
However, the moment when attention turns to a particular topic often indicates the end of this trend. In this case, the return is at a critical level here, as they can technically see a bearish reversal of support / resistance, after which they may fall to test the 1% level again.
This may come after news from the Fed in the coming weeks, but lower returns will be optimistic for Bitcoin and gold.
Important Bitcoin price levels to watch out for
The most important levels to look for are identified in the chart above. As long as Bitcoin maintains support at $ 48,300-48,700, a re-test is likely to be $ 52,000. This is a critical factor for further bullish momentum. If $ 52,000 is broken, it will be a test of the $ 55,000 range and possibly new full-time highs.
If the $ 52,000 area remains as resistance, there is likely to be a break below the $ 48,500 support. From that point of view, you might want to hold back $ 42-44K in support next time, which is very important.
Finally, the 21-week moving average is an important indicator for tracking bullish / bearish momentum on higher time frames. As long as this indicator maintains support, the bullish market will remain unchanged.