- Bitcoin price faces multiple resistance barriers as it approaches the $45,000 local top.
- A retest of the $42,867 to $43,755 bearish breaker is likely to result in a downtrend to $38,889 and lower.
- A daily candlestick close above $52,000 will invalidate any bearish thesis in existence.
Bitcoin price is approaching its upside limit after nearly a week-long slow strut-up. Due to the presence of multiple hurdles, a reversal is likely to stable support levels for BTC.
Bitcoin price at an inflection point
Bitcoin price rallied roughly 13% after setting up Monday’s low at $37,524 on March 13. This move albeit slow is aimed at retesting the bearish breaker, extending from $42,867 to $43,755. This setup contains a Market Structure Break (MSB) aka a higher between February 28 and March 2 followed by a flip of the demand zone formed between the swing highs.
On March 3, BTC breached the said demand zone, extending from $42,867 to $43,755 and flipped it into a bearish breaker. This technical formation forecasts that a throwback that leads to the retest of the breaker will face intense rejection. Moreover, the presence of the 100-day Simple Moving Average (SMA) at $42,380 makes it tough for bulls to push BTC higher. So, there is a chance the big crypto could face premature rejection due to the 100-day SMA and trigger a down move.
Regardless, investors can expect Bitcoin price to retrace to Monday’s low at $37,524. In some cases, BTC could slide lower to fill a tiny Fair Value Gap (FVG) extending from $36,170 to $36,966. In total, this down move would constitute a 15% loss and is likely where Bitcoin price will form a local bottom before establishing directional bias.
BTC/USDT 4-hour chart
On the other hand, Bitcoin price might plow through the breaker and retest the weekly supply zone, extending from $45,551 to $51,966. Such a move will invalidate the bearish thesis. However, this uptick does not kick–start a bullish move. For this to occur, Bitcoin price needs to produce a daily, preferably, weekly candlestick close above $52,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.