Bitcoin (BTC) remained stable at $39,000 until the Wall Street close on March 14, when equities took the opportunity to recoup some losses.
BTC/USD 1-hour light chart (bit-mark). Source: Trading View
Bulls Need $40,600 ‘Miracle’ Back
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD remained unchanged at the March 14 open.
The pair bounced back from a last-minute pullback to March 13 at the close of the week to avoid a deeper bounce.
The week was supposed to bring a lot of potential problems for the bulls, but it began with a vote in Europe to ban the Proof of Work cryptocurrency algorithm on March 14th.
However, March 13 was in the spotlight and was the day the US Federal Reserve announced a 25 basis point interest rate hike.
Meanwhile, geopolitical tensions over Russia’s invasion of Ukraine, as well as the resurgence of COVID-19 in China, have been added to the list of obstacles.
Thus, traders lacked spot expectations, given that the market needs to navigate. For Crypto Ed, the 0.618 Fibonacci level near $40,400 will form a local top before a deeper correction begins.
He said that only a “wonderful” $40,600 call could be bullish.
Meanwhile, dealer and analyst Anbessa stressed the $37,600 limit to protect the bulls.
In its real-time order book charts, index-tracking chain provider Materail revealed an increase in selling pressure that hit $40,000 on March 14.
“The new BTC/USDT liquidity order that just came out seems to be trying to push [price] down the supply ladder lower. Expect it to be withdrawn if bids are met,” the account commented on a graph showing changes made to the Binance order book.
Bloomberg Analyst: Bitcoin is ‘cool’ against oil
As for the longer time frame, Bloomberg Intelligence Chief Strategist Mike McGlone doubled down on his opinion that Bitcoin will eventually get stronger after the current turmoil.
On the subject: Two years after the COVID-19 crash: 5 things to know about bitcoin this week
He noted that bitcoin has defied a “fall” in demand for risky assets, defending much of the support.
“The fact that one of the most profitable and most volatile assets since the financial crisis, bitcoin, is showing a relative boom on a fading wave of risky assets in the first quarter may herald the maturation of cryptocurrencies towards digital security in a world that is moving like this.” he reasoned next to a chart comparing WTI oil to BTC.
compared to WTI crude oil. BTC/USD chart. Source: Mike McGlone / Twitter
Commodities remained most active at the beginning of the week, while oil futures began to cool down.