On Tuesday, March 22, during the Asian trading Bitcoin (BTC) soared to $43337 on some exchanges.
However, the coin quickly fell in price to $42250 after traders, who purchased the cryptocurrency above $43000, started selling BTC in the spot market,
According to Glassnode, investors are withdrawing Bitcoins from exchanges. The volume of cryptocurrency on the trading floors fell to a three-year low. Stéphane Ouellet of FRNT Financial Inc stressed that the pressure on the asset is easing and the positions of hodlers are strengthening.
Global uncertainty scares investors and makes them abandon large investments in risky assets, including cryptocurrencies. Today’s Bitcoin rebound is unlikely to lead to quick positive results, but it reflects a long-term trend, the expert believes.
On the 4-hour chart, we see an ascending triangle forming. This triangle provides support for BTC/USD around 39000 but also provides resistance around 43000. The pair is also above 100MA which provides intermediate support around 40000.
At the time of publication, the BTC/USD pair is trading around 42700. Immediate resistance is in the area of 43000. A breakdown of this level will allow the pair to rise to the area of 43200. If the pair breaks this intermediate resistance, we will see a rise to the area of 44000.
If the bears manage to push the price of Bitcoin below 42500, we will see a further decline to the support area of 42000. Further, the pair will receive support in the area of 41500. A break below the key support level could lead to further price decline to $38800.
