Bitcoin (BTC) pulled back after its price broke past $48,000 earlier this week and fell for the second consecutive day. So, what levels might be next? Will BTC continue to drop? Or will it recover? Here are five analysts’ comments on the largest cryptocurrency by market cap…
Is the current situation just a short-term correction?
Enthusiastic calls for a bull market reversal seem to have stalled, especially as Bitcoin (BTC) bulls failed to push the price above the $46,000 mark on March 31. Despite the current pullback, analysts continue to expect lower support. Market analyst IncomeSharks does not appear to have been caught off-guard by the market downturn. The analyst posted the chart below before the price drop and said, “The four-hour chart seems to be seeking some correction.”
The analyst also stated that he does not see a downtrend overall, but it makes sense to see a minor correction. Giving three reasons for the correction, the analyst says that “the supertrend is going flat, we will probably retest this breakout and bounce off the trendline.” “This is a good time for me to make a profit,” the analyst says.
What are the support levels for Bitcoin?
Market analyst and economist Caleb Franzen has published his thoughts on the next support levels. He posted the chart below that shows the next available support levels for Bitcoin with the 21-day, 55-day and 200-day exponential moving averages (EMA). “Sometimes it helps to remove all the noise from the price structure analysis and just look at the exponential moving averages,” Franzen said. Franzen pointed to potential support levels at $42,000 and $45,000.
BTCFuel: Consolidation period required
Analyst BTCFuel has provided a more macro view of what’s next for Bitcoin. He posted the chart below comparing BTC price action in 2012 with its current movement, suggesting that “after rising 28 percent over the past 2 weeks and breaking a major resistance, some horizontal consolidation should be good for Bitcoin”, using the following statements:
I believe that in the coming months, Bitcoin will rise slowly and steadily like in 2012. But altcoins will go crazy.
Oanda analyst: Bitcoin’s bullish momentum is exhausted
Edward Moya, a senior market analyst at Oanda, said, “Bitcoin bullish momentum is definitely out of power and is persistent. geopolitical risk will likely close the last rally. “Bitcoin looks set to consolidate here and may be vulnerable to a drop towards the $44,500 level.” Moya said that while Bitcoin adoption is improving and interest is growing, it takes time to maintain stable long-term flows. “Higher levels will be reached slowly as many traders will also focus on other coins that are earlier in the growth phase,” he said.
Quantum Economist analyst: Consolidation is positive for Bitcoin
According to Jason Deane, chief Bitcoin analyst at Quantum Economics, this consolidation is positive for the market because it is for investors to “make more price discovery” lays a new foundation. On Tuesday, a unit of MicroStrategy, a software company, said it holds a large amount of Bitcoin in its treasury and has received a $205 million loan secured by Bitcoin. As we reported as Kriptokoin.com, the non-profit Luna Foundation Guard (LFG), which supports decentralized networks, also continued to buy Bitcoin. It announced a $272 million acquisition on Wednesday.
What about macro events?
Alongside the price action, European Union lawmakers voted on Thursday in favor of controversial measures to ban anonymous crypto transactions. Apart from that, looking at macro events, the personal consumption expenditures price index (PCE), the Fed’s preferred inflation indicator, showed annual inflation increased 6.4 percent in February, the US Department of Labor’s Bureau of Economic Analysis reported on Thursday. The February rate was the highest since 1982.
The S&P 500 fell 0.5 percent on Thursday. It continues its four-day bearish streak. The decline is believed to be due to the conservative stance of investors, which monitors progress in talks between Russia and Ukraine and mixed US economic data.
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