Bitcoin (BTC) remains close to key support on March 5 as the weekly candle close brings fears of a breakout.
Analysts warn of the fate of $20,000
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it continued to advance over the weekend.
The couple has barely kept up since the fall on March 3, triggered by a call border amid uncertainty through Silvergate Bank.
the streak is broken pic.twitter.com/TY5w7NAKWw
— Daan Crypto Trades (@DaanCrypto) March 4, 2023
While avoiding further losses, the analysis warns that Bitcoin can still fall easily if the nearby support level does not hold.
Monitoring resource Material Indicator explains that BTC price action has “lost key technical support” and $22,000 – the new resistance/support (R/S) view – is now still there for the bulls.
“The local Flip R/S zone is the last position between retests on the trend line. Meanwhile, Trend Precognition shows a downward trend,” it write in the Twitter update section of the day.
“Will see if that changes after the W close.”
The accompanying chart shows the trend line and BTC/USD order book on Binance, with bid liquidity at $22,000.
Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading company Eight, warned that should $21,300 fail to be held, $20,000 may not help prevent the exodus.
“The important area for #Bitcoin is holding the $21.3K area. Lose it, and we will see another sweep to $19.5Kish and altcoins down 15-25%,” he predicted on March 4.
Van de Poppe maintained a more optimistic view overall, indicating $40,000 could still be seen “in a few months.”
“Moral of the story: Dollar Cost Average and have the balls to buy when you’re not sure,” he said advise in the next part of the post.
“Sentiment is very bearish”
With Silvergate’s potential bankruptcy still a hot topic, research firm Santiment asked why the market reaction was so severe.
related: Bitcoin price will retest $25K without Silvergate saga – analysis
In a special post about the phenomenon, the analyst described what he described as “an overwhelmingly negative comment on the market.”
“It is particularly interesting that #cryptocrash has been a key from-and-on hashtag trending on the platform, even though Bitcoin’s mild -5% pullback occurred more than three days ago,” it continued about the behavior of Twitter users.
“Usually, you can use a level of negativity in the market, and this very bearish sentiment can cause a nice bounce to silence the critics.”
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