After dipping below $45,000 on March 31, Bitcoin (BTC) surprised investors with a faster-than-expected recovery to the $46,500 level.
Data of Cointelegraph Markets Pro and TradingView show that The bears managed to push BTC price to an overnight low of $44,210 before the bulls came out in force to lift the price above $46,500 by midday.
Here’s what a number of analysts are saying about the short-term outlook for Bitcoin’s advance and what developments could present headwinds for the top cryptocurrency as a new month begins.
The macro environment continues to affect the price of BTC
Events in the global financial market continue to have a major impact on the cryptocurrency markets and are likely to continue to do so for the foreseeable future.
According to Macro Hive CEO Bilal Hafeez, “Currently, the macro is dominating Bitcoin,” as evidenced by the “recent days of weakness in stocks” that “have also led to Bitcoin’s decline.”
Hafeez also noted higher interest rates in the United States, a more aggressive Fed and weakness in Chinese markets as reasons for the current volatility in equity markets.
While these macro events continue to weigh on financial markets, Macro Hive noted that there are signs of hope in Bitcoin-specific metrics.
Hafeez said:
“Bitcoin-specific dynamics are bullish with renewed exchange-traded fund (ETF) inflows, increased open interest, and HODLers accumulating.”
Traders expect to break above $48,000
According David Lifchitz, managing partner and chief investment officer of ExoAlpha, a pullback in the price of BTC was expected during the last 24 hours. Lifchitz noted that Bitcoin’s “seven-day winning streak” and trending activity for the quarter from institutional investors contributed to the decline.
Despite the setback on March 31, Lifchitz indicated that “March 21 bullish support trend line remains intact” and will probably remain as a support in the future barring “a pullback to the low $40,000s in the coming days.”
The “wildcards” identified by Lifchitz that could affect this perspective include “the situation in Ukraine, the EU financial commission going after cryptocurrencies with a vengeance, and the Mt. Gox liquidation that could happen at any time.”
Lifchitz said:
“A break back above $48,000, and then $51,000 is what the bulls are looking for, so we’ll see if that works for them next week (new quarter = potential for new institutional entries).”
BTC is at the end of a major corrective period
the market analyst Will Clemente provided one last consolation, well public the following graph and pointed to the “Pretty clear reaction from BTC so far on this pullback.”
The significance of the April 1 bounce was succinctly summed up by market analyst and pseudonymous Twitter user, PlanC.
The 128-Day SMA is currently at $43.972. #bitcoin
We broke it and than on this pullback #BTC bounced hard at $44,200.
In all previous cycles (5/5 times), a break of the 128-Day SMA signaled the major corrective / accumulation periods were finished. #crypto
— Plan©️ (@TheRealPlanC) April 1, 2022
Bitcoin’s 128-day SMA is currently at $43.972.
We broke through it and in this pullback BTC bounced hard off $44,200.
In all previous cycles (5/5 times), a breakout of the 128-day SMA signaled that the main corrective/accumulation periods were over.
The total cryptocurrency market capitalization currently stands at $2.137 trillion and the dominance ratio of Bitcoin is 41.1%.
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