Bitcoin Price Rejection At $39K And Rising Regulatory Concerns Are Driving The Market Back On The Run

Volatility and choppy price action continued to dominate the cryptocurrency market on March 7 and news that US President Joe Biden planning to sign an executive order later this week that will outline the government’s strategy for cryptocurrencies was added to the list of factors that are weighing down crypto prices.

Data from Coin-Crypto Markets Pro and Trading Display shows Bitcoin (BTC) bulls were thwarted in a bid to regain support at $40,000 on Monday as revelations about the impending executive order and ongoing conflict in Ukraine sent the market plunge and BTC to a low of $37,155 dropped.

BTC/USDT 1-day chart. Source: TradingView

Here’s what several analysts in the market are saying about the outlook for BTC and whether or not crypto traders should prepare for a prolonged bear market.

Are there any signs of capitulation?

A bearish perspective for the current price action was outlined by crypto trader and pseudonymous Twitter user ‘Crypto Tony’, who Posted the following chart outlines the potential for a capitulation into the low $20,000 for BTC if current support levels break away.

BTC/USD 1-day chart. Source: Twitter

Crypto Tony said,

“Unless we are going to claim some key supply zones, then this is something we have to consider. This choppy B-wave will take many by surprise…”

Looking for a bounce at $36,000

A more optimistic view of the current weakness was offered by analyst and CoinTelegraph contributor Michaël van de Poppe, who: Posted the following chart outlining a possible pullback in BTC price towards the low of $36,000.

BTC/USDT 4-hour chart. Source: Twitter

van de Poppe said:

“Well, Bitcoin is still correcting after a rejection at $39,200. Assuming we bottom out for some liquidity before we have a chance of some upward momentum.”

Technical evidence that BTC price could recover quickly was highlighted by crypto trader and host of The Wolf of All Streets podcast Scott Melker, who Posted the following chart shows that “My favorite signal is present – bullish divergence with oversold RSI on the 4 hour chart.”

BTC/USD 4 hour chart. Source: Twitter

milker said,

“That said, the price really needs to get above $39,600 to avoid hidden bearish divergence, so it’s really hard to get too excited. These divs can build quite a bit.”

Related: Ethereum Threatens to Crash Below $2K as ETH Paints a Bearish ‘Symmetric Triangle’ – Analyst

BTC Could Avoid a Bear Market Above $29,000

An attempt to put at ease those concerned about the possibility of a bear market was made by crypto analyst and pseudonymous Twitter user “Plan C,” who posted the following chart suggesting that “people should stop spreading of misinformation.”

BTC/USD Accumulation Zones. Source: Twitter

plan C said,

“Bitcoin is NOT in a bear market. Above 29k = Mid-Cycle Accumulation. Below 29k = Bear Market. Since when do we place a higher high and a higher low in a bear market? This is crypto, traditional TA definitions of a bear market (

The total cryptocurrency market cap now stands at $1,685 trillion and Bitcoin’s dominance is 42.3%.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Coin-Crypto.com. Every investment and trading move involves risks, you should do your own research when making a decision.

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