Volatility and choppy price action continued to dominate the cryptocurrency market on March 7 and the news that United States President Joe Biden plans to sign an executive order later this week the government's strategy for cryptocurrencies was added to the list of factors weighing on cryptocurrency prices.
Data of Markets Cointelegraph Pro and TradingView shows that Bitcoin (BTC) bulls were thwarted in an attempt to recapture support at $40,000 on Monday, as revelations about the upcoming executive order and the ongoing conflict in Ukraine plunged the market and pushed BTC to a low of $37,155.
Here is what various 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 outlook for the current price action was outlined by cryptocurrency trader and pseudonymous Twitter user 'Crypto Tony', who aware the chart below outlines the potential for a capitulation in the low $20,000s for BTC if current support levels are broken.
Crypto Tony said,
โUnless we start to reclaim some major supply zones, then this is something to watch out for. This choppy wave B will catch many off guardโฆโ
Looking for a bounce at $36,000
A more optimistic view of the current weakness was offered by analyst and Cointelegraph contributor Michaรซl van de Poppe, who aware the chart below outlines a potential pullback in BTC price to the low $36,000 range.
of the Pope said,
โWell, Bitcoin is still correcting after a rejection at $39,200. Assuming we are going to take the bottom to get some liquidity before we have a chance of a bull run."
Technical evidence that BTC price could soon rebound was highlighted by crypto trader and host of The Wolf of All Streets podcast Scott Melker, who aware the following chart notes that "My favorite signal is here: Bullish divergence with RSI oversold on the 4-hour chart."
Melker said,
โThat said, price really needs to break above $39,600 to avoid a hidden bearish divergence, so it's really hard to get too excited. These divs can build quite a bit.โ
Related: Ethereum Risks Crashing Below $2K as ETH Paints Bearish 'Symmetrical Triangle' - Analyst
BTC can avoid a bear market above $29,000
An attempt to reassure those concerned about the possibility of a bear market 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".
Plan C said,
โBitcoin is NOT in a bear market. Above 29k = Mid Cycle Accumulation. Below 29k = Bear market. Since when do we put a higher high and a higher low in a bear market? This is crypto, traditional TA definitions of a bear market (
The total cryptocurrency market capitalization is now $1.685 trillion and the dominance rate of Bitcoin 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 do your own research when making a decision.
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