The BTC price action continues to maintain an upward trajectory, with analysts also pointing out the possibility of the 200-week moving average flipping to provide support. Data from Cointelegraph Markets Pro and TradingView revealed BTC/USD hovering around ZAR 495,720 (equivalent to $27,000) on Bitstamp.
After momentarily touching ZAR 513,680 (equivalent to $28,000) over the weekend, a gradual decline during out-of-hours trading prevented bulls from pushing the price higher. This development led market participants to assess the likelihood of Bitcoin retesting its support levels.
Crypto Tony, a popular trader, shared his thoughts with Twitter followers, “Holding my long position while we are above ZAR 468,200 (equivalent to $25,500), but ultimately we lost ZAR 495,720 (equivalent to $27,000) support, so we are likely to come down and test around ZAR 478,956 (equivalent to $26,100).”
Despite the weekend drift of BTC/USD, Michaël van de Poppe, founder and CEO of trading firm Eight, remained optimistic about the short-term outlook. “Are we staying above ZAR 491,968 (equivalent to $26,800)? Answer is clear; yes. This means the trend will continue to last until ZAR 491,968 is lost. Looking for a final sweep into ZAR 518,708-530,084 (equivalent to $28,300-28,900) and then reversal,” stated part of the analysis on March 18.
However, a subsequent post on the same day emphasized the importance of nearby support just ZAR 5,508 (equivalent to $300) below the current spot price. “ZAR 491,968 (equivalent to $26,800) is crucial for Bitcoin,” Van de Poppe summarized.
Breaking Free from the Downtrend
On weekly timeframes, BTC/USD was still on track for an impressive candle close, having last traded around ZAR 495,720 (equivalent to $27,000) in June 2022.
Trader and analyst Rekt Capital expressed additional optimism, citing the potential for Bitcoin to permanently break free from the intervening downtrend. “When an old multi-month BTC downtrend gets broken… A new BTC multi-month uptrend emerges,” read one of several weekend Twitter posts.
Rekt Capital also underscored the ongoing significance of the 200-period moving average (MA) on weekly timeframes, currently situated at ZAR 465,286 (equivalent to $25,350) and poised for a resistance or support flip. This key level will be closely monitored by traders and investors as Bitcoin’s price action unfolds in the coming days and weeks.
In addition to the technical factors highlighted by various analysts, the broader cryptocurrency market sentiment also plays a crucial role in influencing Bitcoin’s price direction. As institutional interest continues to grow, Bitcoin has solidified its status as a store of value and a hedge against inflation.
Market participants are also closely monitoring global economic developments, including central bank policies and geopolitical tensions, as they may impact the demand for cryptocurrencies such as Bitcoin. Furthermore, the increasing adoption of blockchain technology and the growing popularity of decentralized finance (DeFi) and non-fungible tokens (NFTs) are expected to drive more interest and investment in the cryptocurrency space.
Meanwhile, South African investors are also keeping an eye on local regulatory developments. The South African Reserve Bank (SARB) has been studying the potential risks and benefits of cryptocurrencies, and its stance on the matter could significantly influence the future growth of the cryptocurrency market in the country. As such, any announcements from the SARB or other regulatory authorities will be of great importance to South African cryptocurrency enthusiasts.
In conclusion, while technical analysis and key levels are essential for understanding Bitcoin’s price action, it is crucial to remain aware of the broader market trends and global economic factors that could impact the cryptocurrency’s value. By monitoring these factors in addition to the technical indicators, investors can make well-informed decisions about their cryptocurrency investments.