Volatility and choppy price action continued to dominate the cryptocurrency market on March 7 and news that United States President Joe Biden plans to sign an executive order later this week that will outline the government’s strategy for cryptocurrencies was added to the list of factors weighing down crypto prices.
Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin (BTC) bulls were thwarted in an attempt to regain support at $40,000 on Monday as revelations about the upcoming executive order and the ongoing conflict in Ukraine tanked the market and dropped BTC to a low of $37,155.
BTC/USDT 1-day chart. Source: TradingView
Here’s what several analysts in the market are saying about the outlook for BTC and whether or not crypto traders should prepare for an extended bear market.
Are there signs of capitulation?
A bearish perspective for the current price action was outlined by crypto trader and pseudonymous Twitter user ‘Crypto Tony’, who posted the following chart outlining the potential for a capitulation into the low $20,000s for BTC if the current support levels break down.
BTC/USD 1-day chart. Source: Twitter
Crypto Tony said,
“Unless we start claiming some important supply zones, then this is something that must be considered. This choppy B wave will catch many off guard…”
Looking for a bounce at $36,000
A more optimistic take on the current weakness was offered by analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following chart outlining a possible pullback in BTC price to the low $36,000 range.
BTC/USDT 4-hour chart. Source: Twitter
van de Poppe said,
“Well, Bitcoin is correcting still after a rejection at $39,200. Assuming we’re going to take the low for some liquidity before we have a chance of some upwards momentum.”
Technical evidence that the BTC price could soon mount a recovery was highlighted by crypto trader and host of The Wolf of All Streets podcast Scott Melker, who posted the following chart noting that “My favorite signal is present – bullish divergence with oversold RSI on the 4-hour chart.”
BTC/USD 4-hour chart. Source: Twitter
Melker said,
“That said, price really needs to get above the $39,600 to avoid hidden bearish divergence, so it’s really hard to get too excited. These divs can build quite a bit.”
Related: Ethereum risks crashing under $2K as ETH paints bearish ‘symmetrical triangle’ — Analyst
BTC can avoid a bear market above $29,000
An attempt to put those concerned with the possibility of a bear market at ease was made by crypto analyst and pseudonymous Twitter user ‘Plan C’, who posted the following chart and suggested that “people need to stop spreading misinformation.”
BTC/USD accumulation zones. Source: Twitter
Plan C said,
“Bitcoin is NOT in a bear market. Above 29k = Mid-Cycle Accumulation. Below 29k = Bear Market. Since when do we put in a higher high and higher low in a bear market? This is crypto, traditional TA definitions of a bear market (< 200d), do not apply.”
The overall cryptocurrency market cap now stands at $1.685 trillion and Bitcoin’s dominance rate is 42.3%.
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 conduct your own research when making a decision.
