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BTC price rejects near $40,000 as investors balk at an upcoming Biden administration executive order on crypto regulation.
Volatility and choppy price action continued to dominate the cryptocurrency market on March 7 as news that United States President Joe Biden plans to sign an executive order later this week. This outline for the governmentâs strategy for cryptocurrencies was added to the list of factors weighing down crypto prices.Â
Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin (BTC) bulls were thwarted in an attempt to regain support at $40,000 on Monday as revelations about the upcoming executive order and the ongoing conflict in Ukraine tanked the market and dropped BTC to a low of $37,155.
BTC/USDT 1-day chart. Source: TradingView
Hereâs what several analysts in the market are saying about the outlook for BTC and whether or not crypto traders should prepare for an extended bear market.
Are there signs of capitulation?
A bearish perspective for the current price action was outlined by crypto trader and pseudonymous Twitter user âCrypto Tonyâ who posted the following chart, outlining the potential for a capitulation into the low $20,000s for BTC if the current support levels break down.
BTC/USD 1-day chart. Source: Twitter
Crypto Tony said,
âUnless we start claiming some important supply zones, then this is something that must be considered. This choppy B wave will catch many off guard.â
Looking for a bounce at $36,000
A more optimistic take on the current weakness was offered by analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following chart outlining a possible pullback in BTC price to the low $36,000 range.
BTC/USDT 4-hour chart. Source: Twitter
van de Poppe said,
âWell, Bitcoin is correcting still after a rejection at $39,200. Assuming weâre going to take the low for some liquidity before we have a chance of some upwards momentum.â
Technical evidence that the BTC price could soon mount a recovery was highlighted by crypto trader and host of The Wolf of All Streets podcast Scott Melker, who posted the following chart noting that âMy favorite signal is present â bullish divergence with oversold RSI on the 4-hour chart.â
BTC/USD 4-hour chart. Source: Twitter
Melker said,
âThat said, price really needs to get above the $39,600 to avoid hidden bearish divergence, so it's really hard to get too excited. These divs can build quite a bit.â
Related: Ethereum risks crashing under $2K as ETH paints bearish âsymmetrical triangleâ â Analyst
BTC can avoid a bear market above $29,000
An attempt to put those concerned with the possibility of a bear market at ease was made by crypto analyst and pseudonymous Twitter user âPlan Câ who posted the following chart and suggested that âpeople need to stop spreading misinformation.â
BTC/USD accumulation zones. Source: Twitter
Plan C said,
âBitcoin is NOT in a bear market. Above 29k = Mid-Cycle Accumulation. Below 29k = Bear Market. Since when do we put in a higher high and higher low in a bear market? This is crypto, traditional TA definitions of a bear market (
The overall cryptocurrency market cap now stands at $1.685 trillion and Bitcoinâs dominance rate is 42.3%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.