Bitcoin (BTC) Recently Tried to Test a Significant Resistance Level But Got Rejected, Remaining Below Its Daily 200MA/EMA

Bitcoin (BTC) recently tried to test a significant resistance level but got rejected, remaining below its daily 200MA/EMA. While there are intraday possibilities

Bitcoin (BTC) recently failed to break a crucial resistance level and is now trading below its daily 200MA/EMA, putting it in a potential zone for more volatility, especially with April 2 approaching, traders are expecting some changes in the market.

Despite recording one of its strongest weekly performances last week, smashing through the $88,000 barrier, Bitcoin faced a setback with a steeper-than-anticipated correction on March 28.

This follows February’s core inflation data, which triggered a swift decline, causing traders to become jittery as BTC fell below the $84,000 mark.

Is BTC At Risk Of A Decline To $71,000?

In a recent analysis by blockchain analytics firm Glassnode, they delved into investor behavior and its implications for Bitcoin’s price movements.

The analysis reveals that traders accumulated approximately 15,000 BTC at the $78,000 level on March 10 before distributing it at the recent local peak of $87,000.

This significant shift in coins has largely emptied Bitcoin’s ‘supply cushion’ at $78,000, potentially weakening the support at this level. Without a substantial presence of buyers to defend this price point, BTC could be susceptible to deeper correctional phases.

Bitcoin is currently trading at $83,089 with a 24-hour trading volume of $17.07 billion. Its price range today is $82,140 to $85,503, and it has a market capitalization of $1.65 trillion.

CME Gap Closure And Potential Bitcoin Reversal

Discussing the possibility of more downside at a critical juncture, crypto analyst Astronomer notes that Bitcoin has encountered substantial volatility this year, reaching record highs before facing sharp pullbacks.

After observing Bitcoin’s rejection at near $89,000, Astronomer identifies $83,000 – $84,000 as a strong support zone, which also aligns with the CME gap closure. This pattern in BTC Futures occurs when price gaps left on weekends tend to get filled on Mondays.

Anticipating a consolidation phase for BTC at this support level before an attempt at a bounce. A bearish Friday close has usually led to red Mondays or Tuesdays, adding to the possibility of additional downside pressure.

However, there hasn’t been any major liquidation yet, and Astronomer predicts a potential late-night dump in the NYO trading session. He suggests that Bitcoin’s rejection at $89,000 indicates a weaker local bullish structure.

In case of further correction, Astronomer sees Bitcoin retesting the $81,400 – $82,400 support zone before the price shows signs of bouncing back.