Engaging the reader with the current state of the global crypto market, a recent decline in Bitcoin’s value has been observed. After hitting a record high on January 20th, the iconic cryptocurrency has struggled to recover amid intensive selling pressure and rising bearish trends. Industry experts, including veteran trader Peter Brandt and analyst RLinda, suggest that a deeper correction is on the horizon, with forecasts indicating a target of $73,000. Here, we will dissect the present Bitcoin market trend, key technical analysis, and market outlook.
Bitcoin’s Technical Analysis: Critical Levels To Monitor
Insights from RLinda suggest that the once burgeoning global momentum of Bitcoin is now stalling, as the cryptocurrency enters a significant correction phase. There’s a lack of liquidity in the market, making it arduous for Bitcoin to thrive solely on buying forces and upbeat leverage. Currently, the price is shaping a short-term range within $90,000 and $82,000 after breaking out from a lengthy consolidation phase.
There is a false rupture of the $91,000 resistance level, initially a strong support. This has led to a further decline, with Bitcoin possibly dropping to $82,000, and potentially $73,500 if selling pressure persists. Now, Bitcoin is at the lower boundary of its range, with $82,000 serving as a critical support level.
If the breakdown below this point remains, losses may accelerate, driving the price towards $78,000, and further down to $73,000. While the current trend hints at a greater downside, Bitcoin may still make a short-term recovery by testing liquidity areas at $83,400 and $84,700 before resuming its downward climb. However, without a powerful bullish catalyst, Bitcoin is on the verge of potentially falling towards the $73,000 mark.
Peter Brandt’s Analysis: A Bearish Pennant Indicates More Downfalls
Trusted trader Peter Brandt also resonates with this bearish sentiment. He notes a completed double-top formation at $108,100, followed by a bearish pennant retest. Now that the pennant pattern is finished, a further correction in Bitcoin’s trajectory is suggested unless it recaptures the range of $92,833 – $96,659. If BTC stays below this level, likely losses towards $78,000 and beyond $75,000 are forecasted.
Bitcoin Market Scenario
As of now, BTC is valued at $83,293, having dipped by 10% in the past week, and showing a year-to-date depreciation of 11%. On-chain data analysis from Santiment unveils significant changes in Bitcoin’s whale and shark wallet accumulation patterns over the last half-year.
Slight selling pressure from mid-February to the beginning of March has contributed to Bitcoin’s recent decline, reflecting the risk-off sentiment pervading financial markets. However, since March 3, wallets holding 10+ BTC have amassed nearly 5,000 Bitcoin. Despite this accumulation, Bitcoin’s price has not yet shown any bullish response. If significant stakeholders persist in purchasing BTC, the second half of March might witness a recovery, provided macroeconomic conditions stabilize.
Investors are keeping a close eye on this week’s economic data releases, which could further influence market expectations.
FAQs
What is the current market trend for Bitcoin?
The current trend for Bitcoin is bearish, with indicators pointing to a potential further downturn in value.
Who is Peter Brandt?
Peter Brandt is a seasoned trader known for his technical analysis and market insights, particularly in the cryptocurrency space.
What is a bearish pennant?
A bearish pennant is a chart pattern used in technical analysis that suggests a downward price movement.
What are the current support and resistance levels for Bitcoin?
According to recent analysis, the current support level is at $82,000 and the resistance level is at $83,400 to $84,700.
