After falling below $45,000 on March 31, Bitcoin (BTC) surprised investors with a faster-than-expected recovery to the $46,500 level.
Data from Cointelegraph Markets Pro and TradingView shows that bears managed to sink BTC to a low of $44,210 overnight before bulls kicked in to push the price back above $46,500 by midday.
Here’s what several analysts are saying about Bitcoin’s near-term prospects for the future, and what developments could pose headwinds for the top cryptocurrency at the start of a new month.
The macro environment continues to affect the BTC price
Events in the global financial market continue to have a major impact on the cryptocurrency markets and likely will continue to do so for the foreseeable future.
According to Macro Hive CEO Bilal Hafeez, “Macro currently dominates bitcoin” as evidenced by the “recent days of stock weakness” that “has also led to bitcoin declines.”
Hafeez also pointed to higher interest rates in the United States, a more hawkish Fed and weakness in Chinese markets as reasons for the current stock market volatility.
As these macro events continue to weigh on financial markets, Macro Hive noted that there are signs of hope regarding Bitcoin-specific metrics.
“Bitcoin-specific momentum is bullish with renewed exchange-traded fund (ETF) inflows, rising open rates and rising HODLers.”
Traders are waiting to break above $48,000
The drop in BTC price over the past 24 hours was somewhat expected, according to David Lifchitz, managing partner and chief investment officer at ExoAlpha. Lifchitz pointed to Bitcoin’s “seven-day winning streak” and institutional investor activity in the trend for the quarter contributing to the decline.
Despite the March 31 pullback, Lifchitz cautioned that “the uptrend line from the March 21 support remains intact” and is likely to hold as support going forward unless “a revisit of the $40,000 lows in the next days”.
“Wildcards” identified by Lifchitz that could affect this outlook include “the situation in Ukraine, the EU finance commission going after crypto with a vengeance, and the liquidation of Mt. Gox, which could come any day.”
“A break above $48k then $51k is what the bulls are looking for so we’ll see if it gets served next week (new quarter = potential for new institutional inflows).
Related: Only 2 million bitcoin left: bitcoin hits 19 million milestone
BTC is at the end of a major correction period
A final bit of reassurance came from market analyst Will Clemente, who Posted The chart below notes BTC’s “pretty clean response to this pullback so far.”
The significance of the April 1 jump was succinctly summed up by market analyst and pseudonymous Twitter user PlanC.
The 128-day SMA is currently at $43,972. #Bitcoin
We broke it and then on this pullback #BTC rallied hard at $44,200.
In all previous cycles (5/5 times), a break of the 128-day SMA signaled that the key correction/accumulation periods had ended. #crypto
— Plan©️ (@TheRealPlanC) April 1, 2022
The total cryptocurrency market cap is now $2.137 trillion and Bitcoin’s dominance rate is 41.1%.
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https://cointelegraph.com/news/bitcoin-recovers-the-46k-level-but-several-factors-could-prevent-a-stronger-breakout Bitcoin is bouncing back to the $46,000 level, but several factors could prevent a stronger breakout