Over the past few days, Bitcoin has been price correcting. With this fall, traders are curious as to whether this is a partial return (pullback), or the start of a deeper downtrend. The problem is that almost no one can predict. Analysts can only point to critical price support levels based on past data and evidence.
However, in the downward phase of the price, traders’ fears and worries about a possible fall will cause the price to fall. The gradual rise in prices is due to the fear of being left out (FOMO) of traders and entering into buy trades.
Bitcoin has historically performed poorly in March in recent years. With March approaching, traders are acting cautiously. This may indicate that seasonal traders have preferred to be on the margins of the market and re-enter the market after the price has fallen.
Bitcoin entering into buy trades
What are the opinions of investment companies in the declining phase of bitcoin prices?
On February 26, Lex Moskovski, CEO of Moskovsky Investment Company, said that the position of bitcoin miners had turned positive for the first time since December 27. According to some analysts, the increase in miner sales has caused the price of bitcoin to fall in the last few days.
“Historically, March has been a downturn for both traditional and digital currency markets,” Philip Swift, co-founder of Decentrader trading platform, said in a private statement. Swift said: I think March will be slow and volatile in traditional markets, but overall I have a bullish outlook for bitcoin and expect strong growth over the next three months.
Besides, CryptoQuant CEO Ki Jong Yu said that the reason for the outflow of capital from the Coinbase exchange was that the institutions were still accumulating their positions at lower levels.
Furthermore, the lack of demand for bitcoin may be one of the reasons for the decline in the premium of Grayscale’s bitcoin deposit.
Grayscale has been thinking about investing in Altcoins and is closely monitoring them. According to a new announcement from the company, Grayscale intends to launch new investment funds centered on Altcoins. Grayscale is considering at least 23 different altcoins to offer potential new products.
Bitcoin price correction level
What is the technical analysis of the bitcoin price decline?
Over the past week, the price of Bitcoin has three times managed to defend the $ 44,000 to $ 45,000 support area. According to experts, this area is very important and can act as a price floor.
According to Cointelegraph, on March 1, 2021, the price of Bitcoin fell again into the $ 44,000 to $ 45,000 price range. This is the third time in the last 7 days that bitcoin has touched this area.
Many traders believe that $ 44,000 to $ 45,000 should be looked at. Leading analyst Willy Woo believes that the $ 45,000 area is strong support and that lowering the price in this area will be accompanied by heavy purchases by buyers.
Fortunately, the third price return to this range has probably been a glimmer of hope for market buyers. Glassnode data show that the SOPR index has seen a complete recovery.
The last time SOPR entered the green zone was five months ago. At that time, the price of each bitcoin unit was in the range of $ 10,000. At the time, this range was the main obstacle to starting the upward trend of this digital currency. Since five months ago, the price of Bitcoin has jumped fivefold to a peak of $ 58,000.
Bitcoin price on 3 February is about 48,900 USD and trading volume in 24 hours is more than 49 Trillion USD.