BTC price climbed 10% near a critical resistance level, but traders warn that the price movement will be “more of the same” until $46,000 is turned into support.
The word of the month is “volatility,” and cryptocurrency investors experienced that today as Bitcoin rose after fears over the Biden administration’s executive order on crypto turned out to be a “nothingburger.”
According to numerous observers, the price of Bitcoin (BTC) soared 10.42 percent to an intraday high of $42,606 as cautious buyers came back into the market after trading at the $39,000 level for a few days.
Here’s what the market’s traders and analysts are saying about the recent move, as well as the key regions of support and resistance to watch.
“Same story, different pump”
According to crypto expert and pseudonymous Twitter user ‘Plan C,’ Wednesday’s move for Bitcoin was just a rerun of prior behaviour, as shown in the chart below. “Different pump, same tale.
“BTC needs to break the “downtrend resistance band,” also known as the Uptrend Support Band, and then hold it as support,” according to Plan C. Otherwise, this is just another wolf in sheep’s clothing. Support Band for the Uptrend: $43,564 – $46,265.”
In the post below, independent market expert ‘Crypto Ed NL’ concurred with this attitude and advised more sideways trading.
“No, this isn’t some new Elliott Wave theory,” Crypto Ed NL explained. It’s what I believe will happen next. Pump-range-pump-dump-range-dump-range-pump.”
It’s not a good idea to be overconfident!
Bitcoin is presently rubbing up against the “simple trendlines connecting the local highs from December 2021 and February 2022,” according to Delphi Digital analysts.
Now that BTC is back over $40,000, Delphi Digital advises traders to “expect for this level around $42,500-$43,000 to be tested,” which is exactly what happened in trading on March 9.
“Contrarian sentiment analysis is often a good place to begin looking for trades, much like the recent short-term rally in prices off of the $34,000 lows,” Delphi Digital said, “but we caution that the worsening macro and global backdrop is still a key consideration for market performance at this time.”
Bitcoin must close above $43,100 to be considered successful.
“BTC has completed upside wicks beyond the $43,100 resistance on a few occasions over the previous few weeks (orange circle),” according to independent market analyst ‘Rekt Capital.”
“Which is why it’s critical that BTC executes a Weekly Close above this level, just like it did in the previous blue circle in August 2021,” Rekt Capital added.
The total value of all cryptocurrencies is currently $1.839 trillion, with Bitcoin commanding 43.5 percent of the market.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.