Bitcoin (BTC) price dropped 20 percent after approaching its all-time high of $ 62,000 in mid-March. As the cryptocurrency markets are often volatile, it can also be called a normal setback for the current bull market.
When the markets do not rise in a straight line, it is necessary to create the ground for further bullish momentum. Correction is essential for this. In addition, on March 26, a record option of $ 6 billion will expire. More price volatility can be seen.
It’s common for the momentum in the market to change after the options expire.
$ 53,000 needs to turn into support to regain upward momentum
The 4-hour chart clearly shows the support / resistance conversions experienced during the decline. There has been a distinct downtrend since the all-time high of $ 62,000.
Bitcoin’s price rejected the $ 56,500 critical resistance after Tesla announced that BTC would be accepted (and not exchanged) in the US for its vehicles.
Considering that the $ 53,000 support zone has been tested multiple times in recent weeks, it was thought that this level could not be held. Therefore, the price dropped on March 25 and fell to $ 51,500.
Bitcoin’s price must regain the $ 53,200 to $ 53,800 area to capture bullish momentum in the near term. If not, the next support zone between $ 49,500 and $ 51,500 will be tested.
The general structure is rising, albeit slowly
The daily chart for the BTC / USD pair reveals the rise, pointing to higher lows and peaks. From this point of view, even if correction is made up to $ 44,000, the uptrend will still be valid.
So the bitcoin price has a big support between $ 49,500 and $ 51,500 and it is not expected to fall further. In addition, no clear bear market will occur until it drops below $ 44,000.
Dollar getting stronger
The US dollar began to strengthen. Therefore, it is not surprising that risk assets such as commodities and cryptocurrencies are falling.
Crypto markets see a decline, especially when the dollar recovers in the short term. However, this recent increase in the dollar is likely temporary, as it is about to enter strong resistance. Moreover, the overall structure still points to lower dips and peaks. This situation leaves the door open for a trend reversal soon.
So if the dollar’s bullish momentum subsides, things can turn out for the cryptocurrency markets and Bitcoin.
Possible scenario for Bitcoin
The 4-hour chart for Bitcoin shows that a retest of $ 53,200 to $ 53,800 will likely be denied and a decline will occur. Therefore, the most likely scenario in the near term is pointing below.
The green zone shown in the chart above indicates the area to watch in case of a potential bullish divergence or spike. If such a move occurs, the ideal scenario for the bulls would be to create a higher bottom.
The formation of such a high level can drive the Bitcoin price to targets of $ 68,000 and then $ 82,000.
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