Bitcoin (BTC) was rejected again this week, like a few weeks ago, between $44,000 and $45,000. On Thursday, bitcoin already plummeted at a rapid pace and the price fell even faster in the past 24 hours.
Bitcoin drops to $39,000
From bitcoin price appeared to be holding around $41,500 as of yesterday morning. However, when bitcoin arrived at $42,000 yesterday afternoon, the price started to fall again. At around $40,700, bitcoin found support for a while, but a few hours later, the price plunged further.
Bitcoin eventually hit a low of $38,750 around midnight. It was a whopping 7.7% drop from $42,000 and even a 13.5% drop from its peak at around $44,800.
Overnight bitcoin was generally able to hold around $39,000 and is trading at $39,050 this morning. Binance and €35,750 on Battle.
Uncertainty in the crypto market is increasing again
At the beginning of this week, we saw confidence return just as strongly, but that turned out to be short-lived. The situation in Ukraine continues to deteriorate, with the war and economic sanctions making an unstable market even more unstable. Risky stock markets fall while raw material prices rise sharply. People are gradually even fearing a new economic recession because of the high energy costs.
We are back down in extreme fear again folks.
Live chart: https://t.co/Jr5151zN7I pic.twitter.com/GV6mS2agFn
— Philip Swift (@PositiveCrypto) March 5, 2022
In addition, the whales cashed in on part of their profits, which caused increased selling pressure. There were also investors who were a little too hopeful again en masse long positions and were liquidated again. That caused the decline to accelerate.
Analysts remain bullish, may see bottom
Nevertheless, the on-chain data is still very bullish from; much of the market is still holding its BTC tight:
#Bitcoin $ BTC Market Update – on-chain data.
🟢Netflow – (inflows-outflows) negative 👉more outflows from Exchanges✅
🟢Miners Reserves➡️✅ – sideways
🟢Reserves on Exchanges➡️✅
🟢Miners Outflows – can’t see sell off🧵1/3 pic.twitter.com/BrnMw9mtgJ
— IT Tech (@IT_Tech_PL) March 5, 2022
That is why many analysts are still convinced that bitcoin can rise sharply at some point. For now, however, it seems likely that we will see a retest of the USD 38,000 level first. Should the price fail to hold, bitcoin may plummet all the way to the $33,000-$35,000 range, just like last time. Many analysts still believe that this is the bottom.
The 33k low we put in looks very similar to the last 3 corrective phase bottoms. #Bitcoin
This data speaks for itself. #Crypto pic.twitter.com/QsBrDrO72m
— Plan©️ (@TheRealPlanC) March 4, 2022
#BTC Daily,
– Classical Triangle Pattern.
– DCA between 35K ~ 40K would be nice.
– Personally, I would not see #BTC going below 35K at all. #BTC #Bitcoin pic.twitter.com/aTq4jVy94o– Minkyu Woo (Min) 🇰🇷🇹🇭 (@minkyutekken) March 5, 2022
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