Bitcoin (BTC) remained below some critical support zones over the weekend after a late sell-off cost the bulls above the $40,000 mark.
Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View
Upper Range Support Levels Crash for BTC
Data from Cointelegraph Markets Pro and TradingView painted a bleak picture for BTC/USD on Saturday, with the pair lingering around $39,000 after reaching a low of $38,600.
Traders were hoping that the various price levels above $40,000 would be enough to stabilize the market after its latest surge to $45,200.
In this case, however, the bids failed to sustain the trend, sending Bitcoin back into the middle of the range it had been in during 2022.
#Bitcoin hanging on the edge of a cliff for the past few hours pic.twitter.com/dAD2AveTOi
— Matthew Hyland (@MatthewHyland_) March 5, 2022
In a market review released Friday, Filbfilb, co-founder of the Decentrader trading package, highlighted $36,000 as a potential target for short positions if the area around $39,500 didn’t hold — which it ended up doing.
Bitcoin, he said, “was still in a range at the macro level,” but support was in the form of a “tide” that looked capable of maintaining long-term structures.
Among them was the 200-week moving average (MA), which is now above $20,000 and rising, which should provide ultimate support as macro markets experience something similar to the March 2020 Covid crash in terms of sentiment.
“Systematic risk in the market is high and, as a result, volatility should be expected, as well as deal size and duration,” Filbfilb said.
“Short Term Panic”
The macro environment was also monitored by Cointelegraph contributor Mikael van de Poppe, who discussed the impact of the conflict between Ukraine and Russia and its consequences around the world in an extended YouTube video.
Related: Price Analysis 3/4: BTC, ETH, BNB, XRP, LUNA, SOL, ADA, AVAX, DOT, DOGE
He argued that due to short-term flights to safety, gold and the US dollar are profitable at the expense of bitcoin, but there is acceptance on the surface.
“At this stage, we are seeing bitcoin drop significantly. Why? This is due to short-term panic,” he said.
Van de Poppe added that as another nod to the events of March 2020, both bitcoin and altcoins should experience a renaissance as their usage increases, starting with bitcoin and then expanding into DeFi assets.
Major altcoin tokens have managed to avoid Bitcoin losses on the daily timeframes, generally holding them below 5%.
Ether (ETH) has dropped 3.1% in 24 hours at the time of writing to $2,650.
Hourly candlestick chart ETH/USD (Bitstamp). Source: Trading View