Bitcoin’s recent support fell to $53,000 as volatility recovers before an event expires.
The price of Bitcoin (BTC) was down 20per cent, at $62 000 at mid-March as a result of the recent all-time high. Since crypto markets are often volatile, this might be another normal pullback in the present bull cycle.
Further upward momentum requires remedies, as markets cannot go up in a straight lines. In addition, on 26 March there is a record expiry of $6 billion in options, which frequently results in some volatility.
It is also fairly common that the momentum of the market shifts when the options expire.
$53K level has to become support to gain bullish momentum
Since the recent all-time high of $62,000, bearish support/resistance flips, the 4-hour chart shows an obvious downward trend.
However, after Tesla announced that it began to accept BTC for its vehicles (and to hold it), Bitcoin’s prices rejected the critical resistance area of $56,500 at the most recent rally. As the price level could not be more upside down, renewed tests in the supporting zone of 53,000 dollars were inevitable.
Since the supportive area of $53,000 has been tested several times in recent weeks, this level is unlikely to last this time. Thus, on the 25th of March, the price collapsed and fell to 51.500$.
Therefore, the cost of Bitcoin now needs to return to an area of between $53,200-$53,800 to recover in the near term any bullish momentum. If this is not the case, the next support zone between $49,500 and $51,500 will most likely have more downside.
Overall structure still heavily bullish
The BTC/USD daily diagram still shows a bullish perspective that shows consistently higher and higher levels. To do so would still mean that the bullish building remains valid, a correction at up to 44,000$.
In this respect, the price of Bitcoin is currently massive and will not drop any further, with support between 49,500 and 51,500 dollars.
The barious divergence will not be confirmed until the market begins to fall below $44,000 and to drop below $44,000.
Dollar showing strength
The United States dollar once again demonstrates strength as yields also increase significantly. So the risk assets, including commodities and cryptocurrencies, falling is not surprising.
For crypto markets, a rebounding USD, especially in the short term, is typically belittling. But this latest dollar upturn is probably temporary because it has a strong resistance. In addition, the structure still shows lower and lower highs, which means an upside-down trend is likely relatively soon.
Therefore, if the dollar’s momentum stops, it will be more upside for Bitcoin and the crypto-monetary market.
A possible scenario for Bitcoin
The 4-hour Bitcoin chart shows a downward trend that would probably reject a test for the $53,200-$53,800. In this current price structure, therefore, the most likely downside is in the near term.
A green area indicating a potential divergency or immediate bounce is the area to be observed in the chart above. If such an action happens, a higher level would be the ideal scenario for the bulls.
Once such a lower rate has been established, the prices of Bitcoin will continue to climb at $68,000 and $82,000 for the next interest.
