Bitcoin Threatens $38K As 3-Day Chart Hints March 2020 Repeat Covid

Bitcoin (BTC) tested another $38,000 overnight as the weekend kicked off with uncertainty among traders.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

3-day chart could be a “precursor” for weekly

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD around $39,000 after multiple attempts to break the $38,000 support.

The couple also saw a Short-term spike above $40,000 Friday thanks to geopolitical developments, this nonetheless lasted a few minutes before the previous status quo returned.

Such “faking” to higher levels – ending with Bitcoin fully appearing and liquidating both short and long positions – has been familiar behavior for market participants this month. .

Now, however, the lower time frames have begun to show signs that a more significant downtrend may be imminent.

“3-day BTC candle hits 200 MA for the first time since Covid collapse,” analysis resource Material Indicators alert Twitter followers of the day.

“If this is the premise for what the Weekly candle is going to do, make sure you have enough powder to take advantage of the buying opportunity afterwards. That bounce could change your life.”

The 200-week moving average, now just above $20,000 and still climbing, has acted as a historic bottom throughout Bitcoin’s life and has never been breached.

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BTC/USD 1-week candlestick chart (Bitstamp) with 200MA. Source: TradingView

Meeting it would require 50% off current spot prices and 70% off all-time highs – something BTC/USD has achieved in the past.

The Covid incidentFor example, saw a 60% drop in a few days before an equally strong reversal started a new price pattern later in the year.

Bitcoin remains in the spotlight of the stock markets for the week, while those markets are trending lower to the weekly 2.9% and 3.5% declines for the S&P 500 and the S&P 500, respectively. Nasdaq.

In the past, the famous trader Pentoshi has clearly stated that he believes that Wall Street incident style event can dominate the market this year.

Big and small BTC bets keep flowing in

On the plus side, whale buying and the growth of smaller investor wallets have created reasons to rejoice for long-term investors.

Related: Bitcoin derivatives indicators reflect the neutral sentiment of traders, but anything can happen

Like Cointelegraph report30,000 BTC left Coinbase on Friday, while the exchange’s reserves mimicked the drops seen last July and September – just before Bitcoin’s significant price increase.

Lex Moskovski, CEO of Moskovski Capital, “10-100 BTC wallets are stacking like crazy, their supply is growing parabolic” more about wallets, citing data from online chain analytics company Glassnode.

“These guys sold exactly the meat of the $10k-50k Bitcoin move.”

An accompanying chart shows the percentage of BTC supply currently held by entities – one or more wallets believed to have the same owner – which is currently at a one-year high.

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Proportion of Bitcoin supply held by entities with balances between 10-100 BTC on annotated chart. Source: Lex Moskovski / Twitter