As some whales and lesser purchasers choose to go big on BTC at current prices, doomsday scenarios for Bitcoin price action remain in focus.
Overnight, Bitcoin (BTC) touched $38,000, as traders began the weekend with apprehension.
The 3-day chart could serve as a “precursor” to the weekly chart
After repeated tries to break the $38,000 support, BTC/USD was circling $39,000, according to TradingView data.
Due to geopolitical happenings, the pair also had a brief spike above $40,000 on Friday, but this only lasted a few minutes before returning to the previous status quo.
Such “fakeouts” to higher levels — which ended with Bitcoin turning full circle and liquidating both short and long positions — were already common this month.
Lower periods, on the other hand, were beginning to show symptoms of a more serious decline on the horizon.
On the day, analytics resource Material Indicators cautioned Twitter followers that “3 Day BTC candles are flirting with the 200 MA for the first time since the Covid crash.”
“Make sure you have enough powder to take advantage of the buying chance that follows if this is a preview to what the Weekly candle will accomplish.” That bounce has the potential to change your life.”
The 200-week moving average, which is now slightly above $20,000 and increasing, has served as a historical bottom zone for Bitcoin throughout its history and has never been breached.
Meeting it would necessitate a 50% decline from current spot price and a 70% drop from all-time highs, both of which BTC/USD has previously reached.
For example, the Covid crash witnessed a 60 percent drop in a matter of days before an equally significant turnaround later in the year ushered in a new price paradigm.
During the week, Bitcoin remained at the mercy of stock markets, which trended lower to cap 2.9 percent and 3.5 percent weekly losses for the S&P 500 and Nasdaq, respectively.
Previously, well-known trader Pentoshi declared unequivocally that he believes a Wall Street Crash-style event might occur this year.
BTC bets of all sizes continue to pour in
On the plus side, long-term investors can rejoice over whale buy-ins and smaller investor wallet growth.
30,000 bitcoins were removed from Coinbase on Friday, while exchange reserves fell to levels recorded in July and September of last year, just before Bitcoin’s huge price rises.
— whalemap (@whale_map) March 11, 2022
“Wallets with 10 to 100 bitcoins are stacking like crazy, and their supply is going stratospheric,” says one user. Moskovski Capital’s CEO, Lex Moskovski,
10-100 BTC wallets are stacking like crazy, their supply is getting parabolic.
— Lex Moskovski (@mskvsk) March 12, 2022
The proportion of the BTC supply presently controlled by entities – one or more wallets considered to have the same owner — has reached its highest level in a year, according to an accompanying chart.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.