BTC price made a 10% move toward a key resistance level, but traders warn that the price action is just “more of the same” until $46,000 is flipped to support.
Volatility” is the word of the month and that is exactly what cryptocurrency investors saw today as Bitcoin rallied after concerns over the Biden administration’s executive order on crypto turned out to be a ‘nothingburger’.
Data from Cointelegraph Markets Pro and TradingView shows that after trading near the $39,000 mark for the past few days, the price of Bitcoin (BTC) spiked 10.42% to an intraday high at $42,606 on as cautious traders flooded back into the market.
Here’s a look at what traders and analysts in the market are saying about this latest move and the areas of support and resistance to keep an eye on.
“Different pump, same story”
Wednesday’s move for Bitcoin was just a repeat of recent behavior according to crypto analyst and pseudonymous Twitter user ‘Plan C’, who posted the following chart stating “Different pump, same story.”
Plan C said,
“BTC needs to break the “downtrend resistance band,” AKA Uptrend Support Band, and then hold it as support. Otherwise, this is just another cry wolf move. Uptrend Support Band: $43,564 – $46,265.”
Independent market analyst ‘Crypto_Ed_NL’ agreed with this sentiment and suggestion further sideways trading in the post below.
“No, this is not some new Elliott Wave theory… It’s what I think is coming next. Pump-range-pump-dump-range-dump-range-pump.”
Overconfidence is not advised!
Analysts at Delphi Digital noted that Bitcoin is now bumping up against the “simple trendline connecting the local highs from December 2021 and February 2022.”
According to Delphi Digital, now that BTC is back above $40,000, traders should “look for this level around $42,500-$43,000 to be tested,” which is exactly what occurred in trading on March 9.
Delphi Digital said,
“Contrarian sentiment analysis is often a good place to begin looking for trades much like the latest short-term rally in prices off of the $34,000 lows, but we caution the worsening macro and global backdrop is still a key consideration for market performance at this point in time.”
Bitcoin needs to close above $43,100
Independent market analyst ‘Rekt Capital’ posted the following chart highlighting that “BTC has performed upside wicks beyond the $43,100 resistance on a few occasions over the past few weeks (orange circle).”
Rekt Capital said,
“Which is why it’s important that BTC performs a Weekly Close above this level, just like in the previous blue circle in August 2021.”
The overall cryptocurrency market cap now stands at $1.839 trillion and Bitcoin’s dominance rate is 43.5%.