Bitcoin price crashes below $48K, but is the bull market in danger?

비트 코인 (BTC) price has been grinding up nicely over the past few weeks, but the past 24 hours have seen a significant correction. BTC price dropped by over $10,000 ...에서 $58,000 to under $48,000, a correction of almost 20%.

This pullback — which many anticipated as 28,000 BTC was deposited to Gemini — also caused other cryptocurrencies to fall alongside Bitcoin, resulting in Bitcoin’s market dominance rising as a result.

But will history repeat and produce a dull, corrective March? Let’s analyze the charts.

Bearish divergence implying further downside to come

BTC / USDT 4 시간 차트. 출처: TradingView

Markets never go up in a straight line, and corrections must occur from time to time. This can be considered aresetfor the market, which reverts back to the mean trendline, and the euphoria fades.

At the first stage of a correction, people still expect the corrective move to be a tiny correction, while the sentiment slowly starts to shift. The moment the correction continues, the lower the price goes, the worse the sentiment becomes.

At the bottom, Bitcoin will be calleddeadand a Ponzi once again, after which the price has historically recovered.

The critical question now, 하나, is whether the market will see a prolonged correction or if Bitcoin’s price will hold above the green box shown in the chart above. That green box is the previous period of compression that technically should serve as major support.

If the area between $42,000-44,000 holds, upward continuation is likely. 그 경우, the point of interest at $63,000 is still on the table.

하나, the bearish divergence and the weakness at the start of this week suggest more downside is possible. 그런 점에서, losing the $42,000-44,000 area could result in a further correction toward $37,000.

March historically isn’t a bullish month

BTC/USD 1-week chart. 출처: TradingView

The weekly chart for Bitcoin shows some beautiful historical data, which shows that March tends to be a period of correction or consolidation. Massive corrections happened in 2017, 2018 과 2020 during this period, 동안 2016 과 2019 saw sideways price action.

물론이야, history is not guaranteed to repeat, but history rhymes and historical data often provides insight into how market cycles work.

그런 점에서, the critical indicator to watch is the 21-Week MA, which should hold Bitcoin’s price from dropping further. In that perspective, the current price level of the 21-Week MA is found at $28,000, and this will crawl up to $32,000-$34,000 in the coming weeks.

그러므로, the recent higher low is created at $30,000, which means that a further drop toward $38,000-$40,000 is not unlikely as that would be a regular 30-40% 보정.

Critical levels to watch for Bitcoin

XBT/USD 1-day chart. 출처: TradingView

The daily chart of Bitcoin shows some critical levels to watch for the current period. First of all, the recent drop-down brought Bitcoin’s price to a vital support level. It should hold this zone between $42,000-44,000 to avoid more downside.

If this doesn’t hold, a further drop to the level around $37,000 가능성이있다. This would also grant a retest of the 21-Week MA.

하나, if the green zone between $42,000-44,000 does provide support, a rebound is likely toward $63,000, as previously stated.

하나, this is too early to call, as historically, the end of February and March is a corrective and not a bullish period for the markets in general.

여기에 표현 된 견해와 의견은 전적으로 저자 그리고 반드시 Cointelegraph의 견해를 반영하지는 않습니다.. 모든 투자 및 거래에는 위험이 수반됩니다. 결정을 내릴 때 스스로 조사해야합니다.

광고를 차단하자! (왜?)

출처: 코인 텔레그래프

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