After Bitcoin recorded a new all-time high above $60k at the weekend, a price retracement was inevitable as an earlier analysis predicted.
The support level at $55k needed to hold to prevent serious threats of a bearish takeover. However, when the correction came, buyers were unable to defend the $55k support as it flipped as well as the $54k. The $53,000 support held out fine during the dip as it was not tested.
For now, the $53k support stands as a long-term one as it will continue to hold until BTC experiences serious seller congestion. Flipping the $53,000 support will mean a dipper price correction as it will open a path to test other supports such as $51k, and worse $48k.
Historically, March is usually not a bitcoin-friendly month. For an improvement this month, traders must ensure that prices close at above $55k this month. If BTC ends this month at $55,000, there is more hope of the coin hitting another ATH next month.
The bearish capitalization of the market also affected Bitcoin’s short-term bullish run. At the time of writing, BTC is trading below its pivot point that is set at $56,700 following the recent surge. Using the Pivot Point standard, BTC is currently still in a bearish phase.
To pull out from the current market run, traders must rally the market to reach and surpass the pivot point. Failure to achieve this goal and steady above $55k will mean that the bears still have a larger share in price actions a will price to test the first critical support at $51,610.
On the other hand, flipping the current bearish state would put Bitcoin back on track to hit new all-time highs, and perhaps even six-digit prices before the yearly close.
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