The anticipation of the bull market returning in full swing may have been premature, particularly after Bitcoin (BTC) investors failed to push the price beyond $46,000 on March 31st. Analysts are now forecasting a lower support retest at the $45,000 level despite the recent drop.
According to data from Cointelegraph Markets Pro and TradingView, today’s attempt to push BTC beyond $47,500 was forcefully rejected by bears, sending the top cryptocurrency to fall to $45,500.
Here’s what a few market analysts had to say about Bitcoin’s price drop and whether or not traders should brace for more losses or be ready for the price to rise once again.
A Temporary Adjustment?
Market analyst and pseudonymous Twitter user IncomeSharks was not caught off guard though by the dip in price. He uploaded a chart on his feed before the price drop, indicating that the “4h looks like it wants to correct a bit.”
“This is not me being negative,” IncomeSharks explained, “I’m just seeing three reasons why a small drop makes sense.” The super trend is flattening out, so we’ll most likely re-test this breakout and bounce off the trend line. It’s a good time for me to benefit.”
BTC Is Looking For Support In The $42,000 To $45,000 Range
Caleb Franzen, a market analyst, and an economist explained the next available levels of support for Bitcoin in the following chart, which shows the 21-day, 55-day, and 200-day exponential moving averages (EMA) for Bitcoin. “Sometimes it’s useful to filter out all the noise, remove price structure analysis, and just look at the exponential moving averages,” he explained.
“All of these are prospective Bitcoin supporters, putting us in the $42,000 to $45,000 range.”
A Period Of Sideways Consolidation Was Required
Analyst and pseudonymous Twitter user BTCFuel provided a more macro perspective on what comes next for Bitcoin, posting a chart where he compared the BTC price action in 2012 to its current movement, claiming that “after being up 28 percent in the last 2 weeks and breaking a major resistance, some sideways consolidation should be good for Bitcoin.”
“I expect Bitcoin will continue to rise slowly and steadily in the next months, as it did in 2012.” Altcoins, on the other hand, will go crazy.”
The total cryptocurrency market capitalization is currently around $2.1 trillion, with Bitcoin commanding 41.6 percent of the market capitalization.