Major cryptocurrencies declined on Friday as Russia stepped up its attacks on Ukraine. The global cryptocurrency market capitalization shrunk to the $1.83 trillion mark, falling around 5 percent in the last 24 hours. Bitcoin market dominance fell 0.11 percent to 43.06 percent and the coin was trading at $41,430.77 on the morning of March 4.
Most of the altcoins were bleeding on Friday. Ethereum and Solana fell 7% each, while Avalanche and Cardano fell 6% each.
BTC price analysis
Bitcoin started a sharp decline dipping below the $42,000 levels. At the time of writing, the price of BTC is trading at $41,391.76 with a 4% loss. Currently, we can expect a reversal if the coin sustains above the $42,000 level. The first major resistance lies at $42,500.
On the downside, the main support lies at $40,200. however, a break below $40,000 could trigger a significant drop.
Bitcoin price to gain momentum?
According to Fairlead Strategies, Bitcoin (BTC) appears to have turned a corner and could continue to gain momentum in the short term, citing a widely used technical instrument called the Ichimoku cloud.
“Bitcoin has broken through resistance defined by the daily cloud, and is likely to confirm its breakout by today’s close, Fairlead Strategies CEO and managing partner Katie Stockton told CoinDesk in an email on Wednesday.
Despite trading slightly lower on Wednesday, bitcoin managed to close above the cloud, confirming a trend reversal to the upside. Based on the 200-day moving average (MA) and a 50% retracement level, the breakout reverses the medium-term downtrend and places the next big hurdle on the chart in the $50,000-$51,000 range, Stockton noted.
Also Read: Bitcoin Price Surge To Weaken Dollar DXY Index, When Will BTC Price Hit $50K?
The Ichimoku Cloud was invented by Japanese journalist Goichi Hosoda in the late 1960s and consists of two lines: Major Leg A and Major Leg B. To show future support or resistance, both lines are shown 26 days before the last candle.
The indicator plots these lines using a complicated formula. Users, on the other hand, are not required to understand the inner workings of the indicator as this is handled by the chart providers and can instead focus on deciphering the signals provided by the indicator.
The most recent breakout is supported by a bullish signal on the MACD histogram which is above zero. Stockton stated: “Our short-term indicators are pointing higher.”
So far, the breakout has failed to materialize, with the cryptocurrency currently trading above the $43,000 level. Stochastic on the daily chart is about to show an overbought signal, indicating the possibility of a temporary consolidation before a move higher.
This post Tech Tips Bullish Reversal! Bitcoin (BTC) price needs to break above this crucial level to continue the rally! – Coinpedia – Financial Technology and Cryptocurrency News Media
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