The world’s dominant cryptocurrency, Bitcoin, has halted its bull run in the past few weeks, and the price has changed from a lifetime high of $58,000 to nearly $43,000
There are several arguments for the pullback, including a sell-off from miners and whales. Furthermore, another primary reason for the correction is the sudden surge of yields around the world.
The 2-hour chart for Bitcoin reveals a downtrend since the lifetime high of February. Since then, bearish support/resistance flips have been happening, implying further weakness in the near term.
Significantly, this bearish support/resistance flip has occurred at the $55,000 and $52,000 levels, with the latter serving as the current major area of resistance.
In the last few days, Bitcoin’s price tried to break through this resistance zone but failed. After such a failed breakout, retesting the levels below looks inevitable.
In that view, the critical support zone to hold for BTC is the area among $48,300 and $48,800 levels. As long as those hold, a renewed test of the $52,000 zone could occur.
If BTC sustains support at $48,300-$48,700, a retest of the $52,000 area is expected
Historically, March is a bad month for crypto as recent years have shown overall weakness throughout this period. Such corrections often end at the 21-Week MA, as that’s the key indicator to watch for bull and bear the market’s momentum.
If Bitcoin’s price sustains above the 21-Week MA, further bullish continuation is expected. The 21-Week MA is currently at $29,000, but it will be among $33,000 and $35,000 levels within several weeks. As long as Bitcoin stays over that $30,000 area and the 21-Week MA, investors shouldn’t be worrying about the general bullish trend.
If Bitcoin sustains support at $48,300-$48,700, a retest of the $52,000 area is expected. Significantly, this is the critical breaker for further bullish momentum. If $52,000 breaks, a test of the $55,000 area and potentially new lifetime highs are likely.
If the $52,000 area holds as resistance, a breakdown below the $48,500 support is anticipated.