Bitcoin begins a crucial week after a marked fall that shakes the market. Between macroeconomic uncertainties, tensions on interest rates and technical indicators under pressure, investors scrutinize the next movements. Despite a feeling of extreme fear, some signals suggest a possible reversal. Here are 5 major elements to watch this week!
Bitcoin: five key factors to monitor absolutely this week
Bitcoin is on the razor thread this week, flirting with a critical threshold of $ 82,000 which could cause a huge wave of liquidation. In order not to fix anything, disturbing technical signals and certain market pressures could accentuate this situation.
1. The price of bitcoin drops heavily
Bitcoin experienced a sudden fall, losing 14 % of its value in a week and closing around $ 80,000. This withdrawal marks the strongest weekly drop in dollars never recorded. Some analysts, such as Kevin Svenson, emphasize that the BTC is at a critical level of its weekly parabolic tendency.
Others, such as the Superbro trader, are considering a new descent to $ 78,000, while Cryptnuvo insists on the importance of the $ 77,000 threshold due to the liquidations observed. Despite this fall, the consensus among analysts is that Bitcoin has not yet entered the lower market, but caution is in order.
2. Macroeconomics weighs on the market
This week is also marked by major macroeconomic publications in the United States, including the CPI (inflation) and PPI (production price) indices. The latest inflation figures have exceeded expectations, fueling market uncertainty. The general feeling is “risk-off”, which pushes investors to be cautious.
Anticipations of a drop in rates by the federal reserve are falling asleep, with Only 3 % chance of a monetary easing in March, according to CME Group. In parallel, economic growth forecasts fall, strengthening tensions on the financial markets.
3. A return to 2021?
Bitcoin could retest lower levels, with several technical indicators pointing to the 69,000 to 75,000 dollars area. The “Lowest Price Forward” tool, developed by Timothy Peterson, estimates 95 % that the BTC will not descend under $ 69,000. Other indicators, such as the simple mobile average over 50 weeks (75,560 dollars), are also monitored by analysts.
Arthur Hayes, a former Bitmex CEO, considers that if Bitcoin breaks $ 78,000, the next major support is $ 75,000, with increased volatility expected around 70,000 and $ 75,000.
4. A historically low market feeling
The Crypto Fear & Greed Index has a “extreme fear” reading, reaching levels rarely seen for three years. However, some investors, such as Anthony Pompliano, recall that this type of extreme feeling can precede a bullish reversal. He stresses that despite an index of extreme fear today, Bitcoin is 20 % higher than a year earlier, when it was in “extreme greed”.
5. Bitcoin whales are purchasing
Despite uncertainty, a positive signal emerges: the Whales and Sharks (investors with more than 10 bitcoins) resume their purchases. According to Santiment, these large portfolios have accumulated nearly 5,000 BTC since March 3, after a period of sales between mid-February and early March. If this accumulation continues, a recovery could be loomed for the second half of March.
The solution in the hands of Michael Saylor?
Michael Saylor recently offered a strategy at the recent crypto summit in the White House, aimed at a Bitcoin market at $ 100,000 billion could have an explosive impact on its price. By strengthening institutional adoption and positioning the BTC as an essential value reserve, this vision could accelerate demand while limiting the available supply.
If large companies and states massively adopt this approach, buying pressure could propel bitcoin far beyond its current summits. However, regulatory and macroeconomic challenges remain to be monitored.
Bitcoin therefore crosses a period of strong volatility, such as the Crypto market as a whole which has just lost $ 440 million in capitalization. With an increasing accumulation of Whales and critical technical levels approaching, this week will be decisive for the market trend.
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