Technical Analysis for BTCUSD for 4th March 2022
Bitcoin Recoils from $45k and Drops 7%, Are BTC Bulls Exhausted?
Past Performance of BTC
Technically, BTC buyers have the upper hand from an effort-versus-results perspective. However, after a strong start of the week, BTC prices are dumping in the second half, heaping pressure on BTC holders. When writing, prices were retracting from the $45k resistance level, dropping and unwinding gains posted on the trend defining bull bar of February 28. There could be loading opportunities that are only valid as long as prices trend above the $40k round number and support.
Bitcoin Technical Analysis
The near-term path of least resistance is northwards based on the BTCUSDT candlestick arrangement. Although lower lows threaten to swing back price action to favor sellers traced to mid-February 2022, every low within the February 28 bull bar may offer entries for risk-off traders expecting BTC prices to snap back to trend. The confidence for this outlook is because sellers are yet to retest or breach primary support at $40k. Still, should there be sharp dumps below this mark with increasing trading volumes marching those of early this week, BTC risks snapping back the bear trend set in motion on February 17. In that case, BTC may fall towards $35k—and 2022's lows.
What to Expect of BTC
BTCUSDT price action is wavy at spot rates. For clear trend definition, risk-on traders may wait for a clean breakout towards $50k or $35k in the near to medium term.
Resistance level to watch: $45k
Support level to watch: $40k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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