Bitcoin (BTC) finally had a good week and closed the week with a green candle. However, the price fell somewhat towards the end of the day and last night, but seems to be recovering again this morning. Market sentiment is starting to get more and more positive.
Good weekly close on $ BTC! On the 4hr price did come down and test the 61.8 at $41,000 twice. Second time with a tail past 78.6 and moonraker. Moving back up first levels to clear $41,200 followed by $41,700 https://t.co/CXxAJnaXDG
— Decentrader (@decentrader) March 21, 2022
Bitcoin price starts week with a slight decline
From bitcoin price peaked around USD 42,300 on Saturday evening, but the resistance there still proved to be too strong. Yesterday morning bitcoin seemed like support around USD 41,700, but it broke rather quickly and bitcoin plummeted to USD 41,000 last night.
Bitcoin then made a small rebound and held between USD 41,200 and USD 41,500 for the next few hours. However, the price also lost traction on this last night and then plummeted to a low of $40,600.
Put up a good fight all day, but it just couldn’t hang on. pic.twitter.com/n4GZWSYRbg
– ₿lake (@blaakke) March 21, 2022
However, bitcoin was able to recover quite convincingly this morning. The price is currently rising nicely and is back at $41,300 KuCoin and €37,300 on Battle† Currently, the price is encountering some resistance here and the BTC price is 1.5% in the minus today.
Market sentiment is increasingly positive
One weekly close above USD 40,000, the market is returning some confidence and it looks like bitcoin may be back at USD 40,700 higher low makes. Meanwhile, traditional financial markets are calming down since the outbreak of the war in Ukraine. However, the Moscow stock exchange will remain closed again this week. Gradually, we see sentiment shifting back to the idea that bitcoin is in a mid-cycle correction after all, rather than a bear market.
#bitcoin pic.twitter.com/9kp6g4e3Uo
– nik (@nihkalowz) March 20, 2022
What should we take into account?
However, bitcoin is currently moving in an increasingly tight range. It was therefore expected that last week the price was on the verge of finally breaking out, but that has not happened so far. Still, this has yet to follow suit at some point, but it looks like bitcoin may be consolidating in this range for even longer.
Bitcoin seems to be sticking to the 50 days for now simple on exponential moving averages (SMA & EMA) between $40,600 and $40,900. The next step is for the 100-day SMA and EMA to flip from resistance to support between USD 42,300 and USD 42,900. Then the price could retest the 200-day EMA around $44,700. Before we can speak of a true trend reversal, bitcoin may need to break the 50-week SMA around $45,800. However, it is still possible that bitcoin after a series higher lows still breaks down.
Meanwhile, analytics firm Santiment reports that activity with the stablecoin tether (USDT) is increasing rapidly. Last Thursday and Saturday were the two most active days with USDT of 2022, says Santiment, who historically bullish mentions:
🤑 As #Bitcoin wavers around $41k, #Tether is indicating big moves may be coming for #crypto. Thursday (83k) and Saturday (74k) had the two largest days of 2022, in terms of addresses interacting on the network. Keep an eye on this diminishing stagnancy. https://t.co/KMhY6MyE6e pic.twitter.com/CB8JXeMgMe
– Santiment (@santimentfeed) March 21, 2022
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