Bitcoin’s price behaviour is still very much in the range, which witnessed a classic rejection from the $45,000 level this week.
Bitcoin (BTC) remained below several key support zones entering the weekend following a late sell-off that cost bulls the $40,000 barrier.
BTC’s upper range support levels are collapsing.
TradingView data showed a bleak image for BTC/USD on Saturday, with the pair clinging at a low of $38,600.
Traders thought that a range of price levels above $40,000 would be adequate to stabilise the market following its recent run to $45,200.
In the end, bids failed to maintain the trend, relegating Bitcoin to the middle of the range it had occupied throughout 2022.
#Bitcoin is hanging onto the edge of a cliff the past few hours pic.twitter.com/dAD2AveTOi
— Matthew Hyland (@MatthewHyland_) March 5, 2022
Filbfilb, co-founder of trading platform Decentrader, indicated $36,000 as a potential target for shorts in a market update posted Friday – something that ultimately proved to be the case.
Bitcoin, he had stated, remained “rangebound on a macro level,” but support was available in the form of a “rising tide,” which was likely to retain long-term structures.
Among these was the 200-week moving average (MA), which is presently above $20,000 and rising, indicating that macro markets are experiencing emotion akin to the March 2020 Covid meltdown.
“Systematic risk is significant in the market, and as a result, volatility should be expected, as should trade size and length,” Filbfilb suggested.
“Panic in the short term”
also focused on the macro environment, discussing the impact of the Ukraine-Russia crisis and its global ramifications in a long YouTube video.
Due to short-term flight to safety, he contended, gold and the US dollar profited at the expense of Bitcoin, while acceptance occurred beneath the surface.
“At the moment, Bitcoin is experiencing a substantial decline. Why is this the case? This is due to short-term panic “‘He stated.
In another hint to the March 2020 events, Van de Poppe noted that as usage expands, both Bitcoin and altcoins could experience a rebirth, starting with Bitcoin and then expanding to DeFi assets.
On daily timescales, major altcoin tokens avoided the extent of Bitcoin’s losses, generally remaining around 5%.
At the time of writing, Ether (ETH) was down 3.1 percent in 24 hours to $2,650.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.