Bitcoin had a relatively rough time last week as it plunged by more than 30% after reaching a new all-time high of $58,000. The main factor of that "massive" drop was most likely the action in the US Treasuries market.
Because of the market general view that US economic recovery will speed up, which will then force the Fed to think about increasing the interest rates earlier than expected. The 10-year Treasury yields rose to 1.60%, the highest level in past one year. Furthermore, the $1.9 trillion stimulus package also suppressed the bitcoin price.
Since bitcoin and US Treasury are considered as hedging assets, one becomes more attractive will discourage that of the other.
However, BTC/USD has recovered in the past two days as the yields appear to be softening, and strong institutional support. From the fundamental aspects, Bitcoin seems to be more bullish in March.
BTC/USD Technical Outlook: Bullish Signals Appear
On the 4H chart, Bitcoin price has broken above 38.2% Fibonacci retracement level. The 15-period and 25-period moving averages weighted have formed a "golden crossover", which is a bullish signal. Meanwhile, BTC/USD has also climbed above the first support of Pitchfork indicator and is approaching the 23.6% retracement level ($51,400). If it reaches $51,400, the bullish run will continue.
Support: $48,500, $47,000, $45,000
Resistance: $49,500, $50,500, $51,500
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