Bitcoin (BTC), the largest cryptocurrency in the world, has suddenly lost much value. On March 31, it was worth $27,953, less than $28,000.
This drop is 4.1% lower than its 90-day high of $29,159, reached the day before, on March 30.
The size of the market has also gone down. It is now worth $1.17 trillion, almost 2% less than 24 hours ago.
As we look at this recent drop, let’s consider what might have caused it and what might happen next.
Key ranges and support levels for traders
Crypto Tony, a well-known analyst, has said that the $27,700 equilibrium (EQ) level is a key support level that the bulls should try to keep.
$27,700 is the level (EQ) you need to watch this weekend if you are currently in a fresh long position
Those who are in with me from awhile back, we are not worried unless we lose that range low 💯
Comment your thoughts below 👇 pic.twitter.com/aoXaVizaCr
— Crypto Tony (@CryptoTony__) March 31, 2023
On the other hand, market analyst Filbfilb thinks that Bitcoin’s 200-week moving average (WMA) near $25,500 will be the “front run” next, which would mean lows for two weeks.
I believe the 200-week ma will be front run for the following reasons:
– Already seen evidence of it
– People dont want to talk about exchange risk
– People dont want to talk about stablecoin risk
– Market is positioned short and desperate to exit— filbfilb (@filbfilb) March 30, 2023
Market Structure Shift
On a more positive note, the analytics account Tedtalksmacro points out that bitcoin’s market structure has “truly shifted” on longer timeframes, breaking away from the bear market since its latest all-time highs in November 2021.
#Bitcoin is doing it's best to advertise to those who'd want to enter + hold for the next cycle higher.
On the weekly chart, it's printed it's first higher highs (HH) since November '21 and first higher low (HL) since January '22.
Traders now have clear invalidation and can cut… pic.twitter.com/VwytPuH7Ml
— tedtalksmacro (@tedtalksmacro) March 31, 2023
With the first higher highs since November 2021 and the first higher low since January 2022, he believes the market structure has shifted, providing traders with clear invalidation.