March 4 was another day of price fluctuations for bitcoin (BTC) and the broader cryptocurrency market as the global economic downturn due to the ongoing conflict in Ukraine puts pressure on most of the world’s financial markets.
Data from Cointelegraph Markets Pro and TradingView shows that after holding $41,000 in the early hours of trading on March 4, the afternoon sell-off sent the price of bitcoin below $39,100.
1-day BTC/USDT chart. Source: Trading View
Here’s what many analysts are saying about the future of bitcoin as the world faces a period of heightened economic uncertainty.
A $38,000 re-check is possible.
Weekly BTC/USD chart. Source: Twitter
According to Rekt Capital, $43,100 is an important level for BTC as the last time Bitcoin closed below this level in the weekly chat, the price was “rejected to minus $38,000 for retesting.”
Rekt Capital s.a.o.,
“With the weekly industry below the $43,100 black level, BTC is likely to prepare for a similar price path.”
Traders Say You’re Watching the 50-MA
Independent market analyst Scott Melker provided additional information on technical indicators that traders pay attention to. Melker posted the following chart and emphasized the importance of the 50-day moving average (50 MA).
Btc/usd 1-day chart. Source: Twitter
“Both humans and robots are looking at the 50-day moving average to see if it holds up. I received several applications there. This is the blue line below the price, for those who don’t know.”
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General resistance at $43,100
Michael van de Poppe, another independent market analyst, presented a set of key resistance areas to see if the price of bitcoin goes through a recovery phase over the weekend. Van de Poppe posted the following chart, noting that “Bitcoin is bouncing back as tensions escalate over Ukraine and fears rise as gold surges higher.”
Hourly BTC/USD chart. Source: Twitter
Van de Poppe says:
“We can see a bounce, if we do, then I see $43,100-$43,500 as potential resistance. In general, volatile markets, altcoins are also falling.”
The total market value of the cryptocurrency is now $1.76 trillion, with bitcoin dominance at 42.7%.