Bitcoin levels should be watched next as the price of BTC may retest below $60K
Bitcoin (BTC) Hits New Weekly Low on March 19 – Where Could BTC's Price Action End?
This is the question of traders and analysts as the rate of decline in crypto markets continues.
After a series of new all-time highs, Bitcoin is testing resistance against recently returned levels as support. So far, a safe floor has not been found.
Market observers are therefore drawing more fundamental lines in the sand, and they are also planning for relief.
Some argue that the United States Federal Reserve's interest rate decision due on March 20 will be a critical event that eases pressure on oversold crypto assets. In previous Federal Open Market Committee (FOMC) meetings, risk-asset suppression has been seen many times before.
Cointelegraph takes a look at some popular bets when it comes to BTC/USD in the short term.
BTC price “key support” extends to $50,000
Repeating the move that followed the first new all-time high earlier this month, Bitcoin is quickly heading towards the $60,000 zone.
This is a critical point on traders' radars, and one that has not received convincing testing.
“I think we're going to get at least the sum total of the last few weeks,” George, the famous businessman, summed up on X.
“If this doesn't continue I think we'll see sub 60k again.”
Partner Trader Ali used a price distribution (URPD) to show where the current set of unspent trading tokens, or UTXO, were created. This provides insight into the price fundamentals and areas of interest regarding support and resistance.
“Key Bitcoin support levels to watch are $61,100, $56,685 and $51,530,” he said, examining the ground below $60,000.
“On the other hand, critical resistance points for $BTC stand at $66,990 and $72,880.”
Using Fibonacci retracement levels, analyst Mark Cullen highlights potential support levels that may come into play.
The chart uploaded to X also indicated a “bullish order block” of bidders sitting below the current spot price of $64,000.
“Given the high volume of nodes and fiber levels, I think we're going to see the correction come to an end. It also depends on how the FOMC meeting plays out tomorrow,” Cullen wrote in part in an accompanying commentary.
The FOMC is seen as an “environment for risk”.
On the subject of the FOMC, this continues to be the main macro focus of the week – not just for Bitcoin and altcoins, but for the broader risk-asset spectrum.
RELATED: FOMC Halfway Meets ‘Danger Zone' – 5 Things to Know in Bitcoin This Week
Financial analyst Tedtalksmacro predicts: “We're going to move lower now when Jerome gives his speech on Wednesday.”
Tedtalksmacro has indicated that Fed Chairman Jerome Powell is looking to hawkish any premature market expectations of a rate cut, resetting the inflation dilemma.
“It's a good chance his talk is the bottom line for a disaster environment,” he concluded.
BTC/USD is currently volatile around $64,000, as confirmed by the latest data from Cointelegraph Markets Pro and TradingView.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
