As investors fear a potential Biden administration executive action on crypto regulation, BTC price rejects near $40,000.
On March 7, volatility and choppy price action dominated the cryptocurrency market, and news that US President Joe Biden expects to sign an executive order outlining the government’s cryptocurrency strategy later this week was added to the list of factors pulling down crypto prices.
Bitcoin (BTC) bulls were stymied in their bid to reclaim support near $40,000 on Monday, according to data from several analysts, as disclosures regarding the imminent executive order and the ongoing turmoil in Ukraine sank the market and drove BTC to a low of $37,155.
Here’s what a few market analysts have to say about Bitcoin’s future and whether or not crypto traders should brace for a prolonged bear market.
Is there any evidence of surrender?
Crypto trader and pseudonymous Twitter user ‘Crypto Tony’ had a gloomy outlook for the current market action, posting the chart below, indicating the possibility of a capitulation into the low $20,000s for BTC if existing support levels are broken.
“Unless we start claiming some key supply zones, this is something we’ll have to think about.” Many people will be caught off guard by this rough B wave…”
At $36,000, I’m hoping for a rebound.
Several Bitcoin researchers and traders predict a drop in the price of BTC to the low $36,000 range.
Crypto trader and host of The Wolf of All Streets podcast Scott Melker posted the following chart, noting that “my favourite signal is present – bullish divergence with oversold RSI on the 4-hour chart,” and that “my favourite signal is present – bullish divergence with oversold RSI on the 4-hour chart.”
“That said, to prevent hidden bearish divergence, the price actually needs to reach over $39,600,” Melker added, “so it’s really hard to get too happy.” These divs have a lot of potential.”
Above $29,000, BTC can avoid a bear market.
Crypto expert and pseudonymous Twitter user ‘Plan C’ attempted to reassure individuals concerned about the potential of a bear market by posting the following chart and suggesting that “people need to stop spreading disinformation.”
“Bitcoin is NOT in a bear market,” said Img5 Plan C. Above 29k = Accumulation in the middle of the cycle. Below 29k, the market is in a bear market. In a bear market, when do we put in a higher high and higher low? Traditional TA definitions of a bear market (200d) do not applicable in crypto.”
The total cryptocurrency market capitalization is currently $1.685 trillion, with Bitcoin commanding 42.3 percent of the market.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.