Bitcoin and the rest of the Crypto market retreated from highs gained earlier as bears revisit the $40,000 region towards the end of the present week. BTC found a floor near the $39,655 as of this analysis. The pressing inflation figures worldwide remain an external shock, causing markets to fluctuate wildly up and down as investors look to safe havens to stabilize portfolios. BTC/USD plunged under the daily moving average (MA 50), but it returned higher past $40,000 as its rally might endure more than a few days for a requirement to start a trend reversal. Although risk sentiment remains neutral, most traders are positive about the markets. Bitcoin acted as an inflation hedge throughout the pandemic and was one of its main drivers. However, the US Federal Reserve tightening of monetary policy and rising interest rates could hurt all risky assets, including Bitcoin and other cryptocurrencies. So far, 65% of analysts forecast the strengthening of the dollar in March.
Key Levels
Resistance Levels: $48,500, $45,000, $42,000
Support Levels: $37,500, $35,000, $32,000
BTC/USD Daily ChartAt the end of the week, Bitcoin is trading in a choppy sideways pattern, with near-term activity held down by a south-facing moving average (MA 50), and RSI that might limit upticks in coming sessions fading bullish momentum on the daily chart.
Fresh weakness penetrated below the $40,000 base, putting pressure on the support zone. Any violation would spark fresh acceleration lower for the $37,500 base. Caution on repeated failure to close past $40,000 would signal extended sideways mode.
BTC/USD 4-Hour ChartOn the 4-hour time frame, BTC prices are holding up to the $40,000 region in an impulsive fashion after the 4-hour moving average (MA 200) was broken. BTC/USD is under the resistance of $42,000, suggesting bulls might slow down for a correction.
Although lacking direction, the relative strength index (RSI) fluctuates above its oversold region mark. Overall, the broken MA 200 warns that bulls may pause for consolidation before resuming, with extended dips to find ground above the $37,500.
Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
