Bitcoin value faces ‘last stand’ as weekly shut threatens $22K retest
Bitcoin (BTC) stayed close to key help on March 5 because the weekly candle shut introduced contemporary fears of a breakdown.
BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView
Analyst warns over destiny of $20,000
Knowledge from Cointelegraph Markets Professional and TradingView adopted BTC/USD because it continued to maneuver in a good vary over the weekend.
The pair had remained virtually stationary since its abrupt fall on March 3, triggered by a margin call amid uncertainty over Silvergate Bank.
While avoiding further losses, analysis warned that Bitcoin could still easily fall much lower if a nearby support level failed to hold.
Monitoring resource Material Indicators explained that BTC price action had “lost key technical support” and that $22,000 — the sight of a recent resistance/support (R/S) flip — was now all that remained for bulls to hold onto.
“The local R/S Flip zone is the last stand between a retest at the trend line. Meanwhile, Trend Precognition is indicating a downtrend,” it wrote in a part of a Twitter replace on the day.
“Will see if that changes after the W close.”
Accompanying charts confirmed the pattern line and the BTC/USD order e-book on Binance at stake, with bid liquidity at $22,000.
BTC/USD charts. Supply: Materials Indicators/ Twitter
Cointelegraph contributor Michaël van de Poppe, founder and CEO of buying and selling agency Eight, warned that ought to $21,300 fail to carry as effectively, $20,000 could not assist to stem the exodus.
“Crucial area for #Bitcoin is to hold the $21.3K area. Losing that, and we’ll see another sweep toward $19.5Kish and altcoins dropping 15-25%,” he predicted on March 4.
Van de Poppe nonetheless maintained a extra optimistic view general, suggesting that $40,000 might nonetheless seem “in a few months.“
“Moral of the story: Dollar-Cost Average and have balls to buy when you don’t feel confident,” he advised in a part of a subsequent publish.
“Overwhelmingly bearish sentiment”
With Silvergate’s potential bankruptcy still a hot topic, research firm Santiment queried why the market reaction had been so severe.
Related: Bitcoin price would retest $25K without Silvergate saga — analysis
In a devoted post on the phenomenon, analysts revealed what they described as an “unusually high amount of negative commentary about the markets.“
“It’s particularly interesting that #cryptocrash has been a key of-and-on trending hashtag on the platform, even though Bitcoin’s mild -5% pullback occurred more than three days ago,” it continued about Twitter consumer habits.
“Usually, you possibly can capitalize on this stage of negativity on the markets, and this sort of overwhelmingly bearish sentiment can result in a pleasant bounce to silence the critics.“Twitter knowledge chart with chosen crypto phrases. Supply: Santiment
The views, ideas and opinions expressed listed below are the authors’ alone and don’t essentially replicate or symbolize the views and opinions of Cointelegraph.
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