Bitcoin (BTC) approached a key weekly close on March 19, with traders concerned about a retest of lower levels.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bitcoin bulls must “step in” to protect $26,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $27,000 on Bitstamp.
After briefly tapping $28,000 into the weekend, a slow comedown through out-of-hours trading denied bulls a squeeze higher. This led market participants to weigh the likelihood of Bitcoin returning to test support.
“Holding my long position while we are above $25,500, but ultimately we lost $27,000 support so we are likely to come down and test around $26,100,” popular trader Crypto Tony told Twitter followers.
“The key is for the bulls to absolutely step in at that moment.”BTC/USD annotated chart. Source: Crypto Tony/Twitter
Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, was optimistic about the short-term outlook, even as BTC/USD drifted lower over the weekend.
“Are we staying above $26,800? Answer is clear; yes. This means, trend will continue to last until $26,800 is lost. Looking for a final sweep into $28,300-28,900 and then reversal,“ part of the analysis on March 18 stated.
BTC/USD annotated chart. Source: Michaël van de Poppe/Twitter
A subsequent post on the day nonetheless underscored the importance of nearby support just $300 below the current spot price.
“$26,800 is crucial for Bitcoin,“ Van de Poppe summarized.
“Had two tests now. If we get one more test, it will probably break and cause a deeper and harsh correction. Holding above -> $28,500 next.“
Divorcing the downtrend
On weekly timeframes, BTC/USD was still in line for an impressive candle close, having last acted around $27,000 in June 2022.
Related: Bitcoin price hits $27K in new 9-month high as Fed injects $300B
For trader and analyst Rekt Capital, there was additional cause for optimism thanks to Bitcoin potentially leaving the intervening downtrend behind for good.
Several months later and #BTC has finally broken out from its Accumulation Range
This Accumulation Range was calculated based on historical post-Death Cross retracement theory mentioned in the thread$BTC #Crypto #Bitcoin https://t.co/85DjLHoZnD pic.twitter.com/MRYUSGObdm
— Rekt Capital (@rektcapital) March 18, 2023
“When an old multi-month BTC downtrend gets broken… A new $BTC multi-month uptrend emerges,“ one of various weekend Twitter posts read.
Rekt Capital highlighted the ongoing significance of the 200-period moving average (MA) on weekly timeframes, currently sitting at $25,350 and primed for a resistance or support flip.
BTC/USD 1-week candle chart (Bitstamp) with 200MA. Source: TradingView
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