As Bitcoin (BTC) approached a key weekly close on March 19, the market is starting to become a bit more concerned about the possibility of a retest of lower levels. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $27,000 on Bitstamp, after briefly tapping $28,000 over the weekend before experiencing a slow comedown through out-of-hours trading.
This has led market participants to weigh the likelihood of Bitcoin returning to test support. Popular trader Crypto Tony stated on Twitter that he’s holding onto his long position while BTC/USD is above $25,500, but ultimately, the loss of $27,000 support means that we are likely to come down and test around $26,100. The key, he emphasizes, is for the bulls to absolutely step in at that moment.
Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, was optimistic about the short-term outlook, even as BTC/USD drifted lower over the weekend. According to his analysis on March 18, “Are we staying above $26,800? Answer is clear: yes. This means the trend will continue to last until $26,800 is lost. Looking for a final sweep into $28,300-28,900 and then reversal.”
A subsequent post on the same day nonetheless underscored the importance of nearby support just $300 below the current spot price. “$26,800 is crucial for Bitcoin,” Van de Poppe summarized. “Had two tests now. If we get one more test, it will probably break and cause a deeper and harsh correction. Holding above -> $28,500 next.”
On weekly timeframes, BTC/USD was still in line for an impressive candle close, having last acted around $27,000 in June 2022. For trader and analyst Rekt Capital, there was additional cause for optimism thanks to Bitcoin potentially leaving the intervening downtrend behind for good. As he pointed out in a tweet, “When an old multi-month BTC downtrend gets broken… A new $BTC multi-month uptrend emerges.”
Rekt Capital highlighted the ongoing significance of the 200-period moving average (MA) on weekly timeframes, currently sitting at $25,350 and primed for a resistance or support flip.
Overall, while the market is slightly concerned about the possibility of a retest of lower levels and the importance of nearby support, there is still optimism surrounding Bitcoin’s short-term outlook. The market is waiting to see if the bulls will step in at this critical moment and protect the $26,000 support level, while watching for any potential impact from the ongoing downtrend break and the 200-period moving average on weekly timeframes.
