After dropping below $45,000 on March 31, Bitcoin (BTC) surprised investors with a quicker-than-expected recovery to the $46,500 level.
Data from TradingView and Cointelegraph Markets Pro shows that BTC fell to $44,210 overnight before the bulls came back to take it up to $46,500 at midday.
BTC/USDT 1-day chart. Source: TradingView
Here are the views of several analysts on the future outlook for Bitcoin. Also, what developments could pose a challenge for the top cryptocurrency in the new month.
BTC prices continue to be affected by the macro environment
The global financial markets continue to have an impact on cryptocurrency markets, and will continue to do so in the future.
Macro Hive CEO Bilal Haseez stated that “currently, macro is dominating Bitcoin”, as shown by the “last few day of equity weakness”, which “has also led Bitcoin declines.”
Hafeez also cited higher interest rates in America, a more hawkish Fed and weakness in China as the reasons for current volatility in equity markets.
These macro events continue to impact financial markets. However, Macro Hive observed that there are some signs of hope in Bitcoin specific metrics.
“Bitcoin’s specific dynamics are bullish, with renewed ETF flows, open interest rising, and HODLers accumulating.”
Traders wait for a break above $48,000
According to David Lifchitz (managing partner at ExoAlpha) the pullback in BTC prices over the past 24 hours was not unexpected. Lifchitz cited Bitcoin’s 7-day win streak and the end-of-quarter activity by institutional investors as factors in the decline.
Lifchitz stated that despite the pullback of March 31, “the upside trendline from March 21, remains intact” and will likely continue to support the market moving forward, barring any “return to the low $40,000s within the next few days.”
Lifchitz identified “Wildcards,” which could impact this outlook. These include the “situation in Ukraine”, the EU financial Commission going after crypto with avengeance, and the Mt. Gox liquidation could happen any day.”
“A break above $48,000 and $51,000 is what bulls want, so we’ll wait to see if they are served next Wednesday (new quarter = potential institutional inflows).
Related: Only 2 Million Bitcoin Left: Bitcoin reaches the 19 million milestone
BTC is near the end of a significant corrective period
Market analyst Will Clemente posted the following chart, noting that there has been a “pretty clear reaction” from BTC on this pullback.
BTC/USDT 1-day chart. Source: Twitter
Market analyst and pseudonymous Twitter User ‘PlanC’ succinctly summarised the significance of today’s bounce.
The 128-Day SMA currently stands at $43,972. #Bitcoin It was broken and then on this pullback, #BTC bounced hard to $44,200. All previous cycles (5/5), a break at the 128-Day SMA indicated that major corrections / accumulation periods had ended. #Crypto
— Plan(c), (@TheRealPlanC April 1, 2022
The total cryptocurrency market is now worth $2.137 trillion, and Bitcoin’s dominance rate at 41.1%.
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