Bitcoin price faces ‘last stand’ as weekly close threatens $22K retest
Bitcoin (BTC) remained close to key support on March 5 as the weekly candle close raised fresh fears of a breakdown.
Analysts warn of the fate of $20,000
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it continued to move in a tight range over the weekend.
The pair had remained virtually stationary since the sharp fall on March 3 triggered by a margin call amid uncertainty surrounding the Silvergate bank.
The line is broken pic.twitter.com/TY5w7NAKWw
— Daan Crypto Trades (@DaanCrypto) March 4, 2023
While they avoided further losses, analysis warned that Bitcoin could still easily fall much lower if a nearby support level did not hold.
Monitoring Resource Material Indicators explained that BTC price action had “lost key technical support” and that $22,000 – the sight of a recent resistance/support (R/S) flip – was now all that was left for bulls to hold on to.
“The local R/S Flip zone is the last point between a retest of the trend line. Meanwhile, Trend Precognition indicates a downtrend,” the wrote in part of a Twitter update on the day.
“Want to see if that changes after the W closure.”
Accompanying charts showed both the trend line in play and the BTC/USD order book on Binance with bid liquidity parked at $22,000.
Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading company Eight, warned that if $21,300 doesn’t last as well, $20,000 may not help stop the exodus.
“Crucial area for #Bitcoin is to hold the $21.3K area. Lose it and we will see another sweep towards $19.5Kish and altcoins fall 15-25%,” he predicted on the 4th of March.
Van de Poppe nevertheless maintained a more optimistic view overall, suggesting that $40,000 could still appear “in a few months.”
“Moral of the story: Dollar-Cost Average and have the balls to buy when you don’t feel safe,” he the council in part of a subsequent post.
“Overwhelming bearish sentiment”
With Silvergate’s potential bankruptcy still a hot topic, research firm Santiment asked why the market reaction had been so severe.
Related: Bitcoin Price Would Retest $25K Without Silvergate Saga – Analysis
In a dedicated post on the phenomenon, analysts revealed what they described as an “unusually high amount of negative comments about the markets.”
“It’s particularly interesting that #cryptocrash has been a key off-and-on trending hashtag on the platform, even though Bitcoin’s mild -5% pullback happened more than three days ago,” it continued on Twitter user behavior.
“Usually you can take advantage of this level of negativity in the markets and this kind of overwhelming bearish sentiment can lead to a nice rebuttal to silence the naysayers.”
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
