Bitcoin Still Rangebound, Unable to Catch a Bid to Upside

After showing flashes of brilliance earlier this week despite unfavorable conditions, Bitcoin is going through another extensive pull back.

06:32 07 March 2022

As the geopolitical tension in Eastern Europe surges, some key markets across the globe are beginning to see unprecedented levels of volatility. Also feeling the heat at the moment is the crypto market, with several enthusiasts, particularly Bitcoin faithfuls, deciding it is best to take a defensive stance in the current market conditions where there’s too much uncertainty.

 

A Rough Few Months for Bitcoin

Since crashing hard early this year, Bitcoin has made multiple attempts to climb back above the stern overhead resistances but in vain.

 

Missing the $45000 mark, thankfully, has not proven to be too costly for Bitcoin, except for the times when it met with huge selling pressure on the downside. Luckily, it managed to stay out of danger every time it fell to the $33000 mark, coming out unscathed.

 

In one such instance, after falling to a multi-week low of $32900 on Jan 24th, Bitcoin was on the cusp of a deeper correction, but it tiptoed to safety, recouping losses partially. Following that, it quickly set out to test the psychologically key $40000 level, but the bears collectively managed to stop Bitcoin’s revival dead in its tracks, driving the price further down back to the $33000 level.

 

Facing Headwinds, Bitcoin unable to Move Up

As we’ve seen many times, Bitcoin does fall hard when there’s a selloff, but it doesn’t stay down for too long. It always finds a way to rear up, and it didn’t disappoint this time around either. Just when a trip to lower levels looked inevitable, exactly as the critics predicted, Bitcoin mustered enough demand that sent it soaring back above the $40k mark. This time though, it gathered pace and went on to test $45500, at which level the bullish momentum waned and the weak hands exited.

 

Another chance to surmount the $45000 level went begging.

 

Having bungled another attempt to break through the crucial $45000 level, Bitcoin got knocked down to lower levels. In spite of the extreme selling pressure, the $34000 level held firm, acting as a critical line of defense for the third time. Bitcoin clawed and scraped its way out of danger again.

 

But then, Bitcoin, being Bitcoin, hurtled through to $40000 in no time, and languished there for a while before rearing to $45000 in one swoosh. This sharp rally came at a strange time, though, as tensions flared up in Europe with Russia deciding to launch a scathing incursion into Ukraine out of nowhere.

 

As expected, the offensive action sent global markets reeling but Bitcoin, much to everyone’s surprise, showed serious strength to rally 15% in a span of 24 hours.

 

Bitcoin Stuck in a Range for Close to 60 days

Amid growing talks of a full-blown Russian invasion, Bitcoin bulls have done incredibly well to defend the $40000 support level, preventing further slide in prices. The price is moving in a wide range with sharp price swings in either direction, and, for the time being, this range bound movement is allowing bitcoin proponents to keep their sanity. The obvious question is how long will this range hold? Which side will give way? Which way is the market headed? To be brutally honest, nobody has answers to these questions.

 

The momentum gauges are showing no signs of life so unless a wave of buyers enter the market and push the price up, it will be extremely difficult for Bitcoin to break free from this wide range it finds itself in for close to 60 days now. However, given the present circumstances and the broadly downcast sentiment, it is looking highly unlikely that Bitcoin bulls will turn up in droves to drive the price higher.

 

That being said, there is downside risk but it’s not looking grim though. With the second round of ceasefire talks resulting in an impasse and Russia showing no signs of backing down, more pain is in store over the short term for risky assets the world over. If the war situation doesn’t ease, the wheels could come off of the crypto train at any moment, sending Bitcoin wobbling below the $30000 mark. And, that, in turn, could trigger a hideous downturn to multi-year lows for Bitcoin, and, by extension, the crypto market.

 

After showing flashes of brilliance earlier this week despite unfavorable conditions, Bitcoin is going through another extensive pull back to the downside toward $37000-$40000. As it gets pushed back and forth in this wide range, it’d be best to keep your positions light and use sound risk management strategies to make sure you don’t get your hands burnt.

 

If you’re into trading crypto, the best you could do at the moment is to manage your risk well and protect your capital: keep your positions light and operate with a tight stop loss. That way, you won’t take a hammering even if the price falls through the crucial level of support and goes on to test lower lows. Plenty of traders are banking on advanced trading apps like bitcoin prime to guide them through this turbulent market that keeps sharply swinging back and forth. If reviews are any indication, these traders are quite pleased with the results they’re seeing. Granted, it may be a little daunting to put your faith in these algorithm-based trading applications rather than trust your own judgment. But these are intelligent automated trading applications we’re talking about; they keep trawling the market for the right opportunity and execute your trades when they sniff one--not before ascertaining all the conditions that you laid down for a trade to go through are met. Give it a crack. You won’t be disappointed.