What is Bitcoins next move?

5 Mar 2021

After 2 failed attempts of breaking the important 52k level, Bitcoin is currently trading around the center line of the downward channel. At least a small very short term bounce up could be possible here. Should the price break and confirm the level around the channels center we could see a drop to the next really important support area between 40,5k and 42k or even possibly a little lower. This would result in another huge lower low and be seen as a confirmation of downward pressure by the bears. Furthermore having an eye on rising 10y us bond yields, the returning strength of the dollar and the possible correction in the stock market could also lead to pressure on high risk crypto assets, as a lot of money is flowing back to low risk investments

On the other side sentiment in the crypto market is still strong and it is likely that in the midterm bitcoin is going for another leg up, though we should still remember that crypto bull markets tend to be short and explosive compared to other asset types. In the case of bulls taking back control in the form of a reversal at the current price level or at the support area around 40,k to 42k, Bitcoin needs to break out of the channel and even break 52k with confirmation to continue this bull cycle.

We will habe to see what the market decides.