The blockchain community received some good news on March 14 after regulators at the European Parliament’s Economic and Monetary Affairs Committee rejected a ban on proof-of-work (PoW) protocol-based cryptocurrencies like Bitcoin (BTC) that would have had significant ramifications for the cryptocurrency industry.
Data from Cointelegraph Markets Pro and TradingView shows that despite the positive development, Bitcoin is still trading sideways near the $39,000 level amid geopolitical uncertainty and the possibility of a Federal Reserve interest rate hike in late 2020. this week. CME Fed Fund futures prices suggest that traders are pricing in a March 16 rate hike with 100% confidence.
Here is what various analysts are saying about the outlook for Bitcoin ahead of any possible interest rate hike and what levels to watch when following the bull and bear market scenarios.
Price action has been “incredibly dull”
The price action in the cryptocurrency market on Monday has been “incredibly boring” according to market analyst and Cointelegraph contributor Michael van de Poppe, who public the following chart outlining a possible path that BTC could follow in the coming days:
Referring to the chart, van de Poppe said:
“Fundamentals -> good steps. But, the liquidity sides remain the same. Below $37,000 and we accelerated. Above $45,000 and I think we accelerated for Bitcoin.”
Ongoing consolidation pattern
Usually, Bitcoin appears to be continuing the consolidation pattern it has been following for the past two months, as highlighted in the graph below published by cryptocurrency on-chain analyst, Will Clement.
As for what’s coming with this pattern, options trader and pseudonymous Twitter user John Wick public the chart below noting that there is “a choke forming on the daily chart”. Furthermore, he explained:
“Violent movements come out of the choke just like we saw the last time it formed.”
Looking to turn $38,000 into support
Cryptocurrency analyst and pseudonymous Twitter user, Rekt Capital, offered an analysis from a higher time perspective, and public the chart below pointing to the ongoing attempt to turn $38,000 into support for Bitcoin:
“BTC’s new weekly close shows that the higher low (green) is still intact and price is still in the process of trying to properly turn the $38,000 area into support (red),” Rekt Capital explained.
One last remedy for Bitcoin bulls was pointed out by analyst and pseudonymous Twitter user TAnalyst, which public the chart below showing that BTC is trading near a major support level:
The analyst explained:
“BTC – 9 year support, never broken. No need to talk. Chart is self explanatory.”
The total cryptocurrency market capitalization currently stands at $1.718 trillion and the dominance ratio of Bitcoin is 42.8%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
Keep reading:
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- The price of bitcoin could “go down” due to the fall in volumes and the macroeconomic problems that lie ahead
- On-chain production metrics suggest a bearish outlook for bitcoin
- Fidelity: bitcoin is a “higher form of money”
- Law Decoded: Joe Biden’s Executive Order Is Finally Here, And It Doesn’t Look So Dire, March 7-14
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