Bitcoin seems disappointing and not in greater demand as per ongoing geopolitical tension. The world’s largest centralized exchanges have been asked to prevent the use of cryptos to bypass sanctions. Meanwhile, Bloomberg Intelligence Chief Strategist Mike McGlone reiterated that Bitcoin is well on its way to becoming an international reserve asset. The Crypto Fear & Greed Index is at 21 now, remaining in a state of “extreme fear”. BTC lost nearly 20% from its recent growth to $45,000 in mid-February due to the expected tightening of the Fed’s policy. BTC/USD remains bearish after plunging through the moving average (MA 50) on Mar. 4th reaching a low of $37,161 in the prior day. However, BTC is seeing a sharp rise in dip buying today after approaching a bullish reversal zone. At the time of this analysis, BTC/USD has risen to an intraday high of $39,376 and might trigger a large number of buy orders. Per recent Glassnode data, the number of Bitcoin whales with addresses having balances over 1,000 BTC increased by more than 7%. The indicator has not reached this level since March 2021 as analysts suggest that such a rise is a result of ongoing geopolitical tension.
Key Levels
Resistance Levels: $45,000, $43,000, $40,000
Support Levels: $37,000, $35,000, $33,500
BTC/USD Daily ChartAfter last week’s strong upside rejection below the pivotal resistance of $45,000, bears cracked the next significant supports and breached the moving average (MA 50) at $40,500. BTC/USD seems to recoup losses as shorts cover ahead of prior support zones after extending its steep fall into the fifth day on Monday at $37,161.
As long as price movement remains below broken $40,000 support, which has now reversed to firm resistance, bears are projected to remain in control. On the daily chart, a brief rebound from a low of $37,851 is seeing a sharp rise in dip buying after approaching a bullish reversal zone above $38,000. Above here might trigger a large no. of buy orders.
BTC/USD 4-Hour ChartBTC/USD’s short-term picture is increasingly that of consolidation. However, a convincing break below the $35,000 barrier would ramp up further negative outlook. In the meanwhile, for the pair’s bullish prospects to be revived, the price would need to ascend above the $40,000 resistance band while also sailing past the 4 hour MA 50 and MA 200.
If sellers maintain control, they may be able to reach the $35,000 handle before pursuing the $33,500-30,000 support border, existing since mid-June 2020. The next stop is $37,000, with a bearish breakout leading to the psychological level of $35,000. The nearest resistance at $40,000 and bears are expected to remain in play as long as price action stays below.
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