Bitcoin (BTC) approached a key weekly close on March 19 with traders worried about a retest of lower levels.
Bitcoin bulls need to “step in” to protect $26,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD around $27,000 on Bitstamp.
After briefly knocking off $28,000 heading into the weekend, a slow decline through after-hours trading denied the bulls a push higher. This led market participants to consider the likelihood of Bitcoin returning to test support.
“I’m holding my long position when we’re above $25,500, but we ended up losing the $27,000 support, so we’re likely to go down and test around $26,100,” popular Crypto trader Tony he said Twitter followers.
“The key is for the bulls to absolutely step in at that point.
Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, was bullish on the short-term outlook even as BTC/USD fell over the weekend.
“Are we staying above $26,800? The answer is clear; yes. This means the trend will continue until $26,800 is lost. Looking for a final sweep to $28,300-$28,900 and then a reversal,” part of analysis from 18 .March established.
However, the following post of the day highlighted the importance of the nearby support just $300 below the current spot price.
“$26,800 Is Crucial for Bitcoin,” Van de Poppe in summary.
“I’ve had two tests now. If we get one more test, it’s likely to break and cause a deeper, hard correction. Holding above -> $28,500 onwards.”
Breakdown of a downtrend
On the weekly timeframes, BTC/USD was still in line for an impressive close of the candle when it last hovered around $27,000 in June 2022.
Related: Bitcoin price hits $27k to new 9-month high as Fed injects $300 billion
For trader and analyst Rekt Capital, it was another reason for optimism with Bitcoin potentially now leaving the intervening downtrend behind for good.
A few months later and #BTC has finally broken out of its accumulation range
This accumulation range was calculated based on the historical post-death retracement theory mentioned in the thread$BTC #Crypto #Bitcoin https://t.co/85DjLHoZnD pic.twitter.com/MRYUSGObdm
— Rekt Capital (@rektcapital) March 18, 2023
“When old BTC multi-month downtrend breaks… New $BTC multi-month uptrend emerges,” one of various tweets over the weekend read.
Rekt Capital highlighted the continued importance of the 200-period moving average (MA) on the weekly time frames, which currently stands at $25,350 and is poised for a resistance/support reversal.
The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.