BTC/USD Analysis: Bears Have Become More Active Near the $70,000 Level

FXOpen

On February 26 (A), a strong bullish impulse started in the Bitcoin market. Its trajectory is visually described by a blue line. The price of bitcoins developed along it — this can be interpreted in such a way that market participants agreed that the value of the cryptocurrency was increasing.

If the price of Bitcoin deviated from the blue line, it was only for a short period of time. For example, to pierce the psychological level of USD 60,000 on March 5th.

However, the bullish momentum changed on March 15th, and this can be seen on the BTC/USD chart today:
→ the blue line began to work as resistance (shown by the first arrow);
→ the level of USD 70,000 also began to act as resistance (shown by the second arrow).

BTC price briefly deviated from breaking through the psychological USD 65,000 level - but it appears that due to said resistances, bulls may now have trouble getting Bitcoin price back onto the upward trajectory shown by the blue line.

This could mean that the market's consensus on the value of BTC has changed - the chart suggests that a price of over USD 70k per Bitcoin may be considered overpriced (not surprising after A→B's rise of over 40% in 14 days).

On the other hand, demand remains high ahead of the halving (scheduled for April 19).

According to Matt Hougan (a top executive at Bitwise, one of the BTC ETF providers), about 40% of independent registered financial advisors at Barron's Summit owned Bitcoin. And this number among their clients is about 5-10%, which leaves potential for further growth.

Matt Hougan also noted the growing concern about the huge US government debt, and Bitcoin in this case acts as an insurance asset.

Given the strong fundamentals and signs of technical weakness near the last historical high, it is reasonable to assume that the price of Bitcoin may form some kind of consolidation zone around USD 70,000, thereby suggesting the levels that most market participants consider a fair price for Bitcoin at the moment.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under AFSL 412871 – ABN 61 143 678 719 respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Crypto CFD Trading with FXOpen

Crypto CFD Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 40 markets 24/7
  • Trade with tight spreads and low commissions
  • Choose from 3 trading platforms: MT4, MT5, or TickTrader
Learn more

Latest articles

Forex Analysis

EUR/USD Breaks 2023 Low

Today’s PMI figures were released and came in worse than analysts’ expectations. The Flash Manufacturing PMI and Flash Services PMI for both Germany and France fell below the 50.0 threshold, indicating that Europe’s economy is slowing down.

Shares

Alphabet Inc. (GOOGL) Shares Drop Over 4.5% in a Single Day

As the chart shows, during yesterday’s trading session, the stock price of Alphabet Inc. (GOOGL), the parent company of Google, declined by more than 4.5%. The drop was driven by regulatory pressure on the company concerning its Chrome

Forex Analysis

Dollar Resumes Gains Amid Weak Rivals and Fresh Economic Data

After a brief correction, the US dollar is back on an upward trajectory. The GBP/USD pair has fallen to 1.2600, USD/CAD has bounced from 1.3940 and is heading towards 1.4000, while EUR/USD is approaching

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.