Bitcoin (BTC) held below some critical support zones over the weekend after a late settlement cost pushed the $40,000 mark higher.
BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
Upper range support levels crumble for BTC
Data from Cointelegraph Markets Pro and TradingView painted a lackluster picture for the BTC/USD pair on Saturday, with the pair hovering near $39,000 after seeing lows of $38,600.
Traders had hoped that several price points above $40,000 would be enough to stabilize the market after its latest rally to $45,200.
In the event, however, the offerings failed to preserve the trend, sending Bitcoin back into the middle of a range it had traded in throughout 2022.
#bitcoin is hanging on the edge of a cliff the last few hours pic.twitter.com/dAD2AveTOi
— Matthew Hyland (@MatthewHyland_) March 5, 2022
In a market update published on Friday, Filbfilb, co-founder of trading suite Decentrader, had highlighted $36,000 as a potential target for short positions should the area around $39,500 fail to hold, which it ultimately turned out to be.
Bitcoin, he had said, was “still range bound at the macro level”, but support was there as a “rising tide”, which seemed apt to preserve long-term structures.
Among these was the 200-week moving average (MA), now above $20,000 and rising, which should provide definite support as the macro markets experience something similar to the March 2020 Covid crash in terms of feeling.
“Systematic risk in the market is high and as a result volatility should be expected and trade size and duration should be considered with this in mind,” Filbfilb advised.
“Short Term Panic”
Also looking at the macro environment was Cointelegraph contributor Michaël van de Poppe, who in an extended YouTube video discussed the impact of the Ukraine-Russia conflict and its spillover effects around the world.
Related: Price Analysis 3/4: BTC, ETH, BNB, XRP, LUNA, SOL, ADA, AVAX, DOT, DOGE
Due to short-term flights to safety, he argued, gold and the US dollar were benefiting at the expense of Bitcoin, but under the surface, adoption was taking place.
“At this stage, we’re seeing Bitcoin falling significantly. Why? That’s due to short-term panic,” he said.
In another nod to the events of March 2020, both Bitcoin and altcoins should see a renaissance as usage increases, Van de Poppe added, starting with Bitcoin before expanding into DeFi assets.
Major altcoin tokens managed to avoid the extent of Bitcoin’s losses on the daily time frames, broadly keeping them below 5%.
Ether (ETH) is down 3.1% in 24 hours at the time of writing to $2,650.
ETH/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
This post Bitcoin Loses $40K as BTC Price Support Levels Give Way to 1-Week Lows
was published first on https://cointelegraph.com/news/bitcoin-loses-40k-as-btc-price-support-levels-give-way-to-1-week-lows