Bitcoin (BTC) bulls saw no relief at the open on Wall Street on March 4, as $40,000 support appeared on the horizon.
BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
Trader: Markets are ‘shaky’ but BTC could bounce
Data from Cointelegraph Markets Pro and TradingView revealed fresh March lows of $40,551 for BTC/USD on Bitstamp, bringing two-day losses to 10.2%. Fears over the safety of Ukraine’s nuclear infrastructure led not only crypto but also traditional markets lower on the day, with the S&P 500 trailing European indices to drop 1.4%. “Bitcoin corrects as tensions around Ukraine rise, and fear also rises as gold rises,” Cointelegraph contributor Michaël van de Poppe explained in his latest Twitter update.
“Could be looking at a bounce, if we do, I’m looking at $43.1-43.5K as a potential resistance point. Unstable markets in general, altcoins also fall”.
Meanwhile, looking ahead, a very cautious Pentoshi warned that the macro picture looked bleak thanks to a combination of commodity inflation, the reduced ability of central banks to control it, and existing damage caused by coronavirus responses. in the last two years.
“You can already see other markets starting to show massive cracks in the foundations, Hong Kong has wiped out 100% of post covid gains and it looks like European markets are next,” he wrote in one of a series of tweets about the situation on Thursday.
“I’m not sure how anyone can look at the past and be optimistic about the present.”
Oil continued to be a case in point this week, with WTI hitting its highest levels in a decade and Brent hitting $112 a barrel. Russian oil, by contrast, struggled to find buyers despite being offered at a deep discount.
Price consolidation was “expected”
However, when it came to Bitcoin, not everyone was bearish. Analyzing recent chart movements, the popular account BTCfuel saw a potential bounce already brewing. “It looks like Bitcoin is setting up a reversal structure,” he commented alongside a chart showing two potential trajectories for BTC price action.
#bitcoin looks like it’s setting up a reversal structure 🔥🔥After running into the 100D MA (red) there are 2 scenarios possible IMO. Staying between the MA’s and following the blue scenario or falling below the MA’s and following the orange scenario pic.twitter.com/f4XvqZWVA4— BTCfuel (@BTCfuel) March 4, 2022
Others, including the Kaleo Twitter account, were also unfazed.
“Consolidating in the 40.5K – 42K range above support as expected. Still expecting a bounce from this range,” he wrote on Friday.