On February 23, 2021, a failed rebound above $50,000 appeared to flip the level back into a resistance as $47,000 now becomes a new price focus in the bitcoin market. Selling pressure pushed the markets below $47,000 for the first time in 8 days.
BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview
Data acquired from TradingView painted a rather gloomy picture for bulls as BTC/USD hit lows of $45,000 on Bitstamp. These losses reverse a rebound that stopped Monday’s 20% crash from the all-time highs above $58,000. Bitcoin had managed to bounce from $47,400 to return above $54,000 before a fresh drop hit the market.
At the time of writing, BTC is hovering around $47,000 which has become some form of focus for support. The current trajectory is still unclear amid heavy volatility. In-depth analysis of the buy and sell positions has offered little hope for stemming losses if the level fails to hold, with no strong support below $46,500.
BTC/USD support and resistance levels chart. Source: WhaleMap
$50K Becomes Resistance Again
However, analysts say that the prospect of a more severe retracement is nothing to fear. Compared to the past price dips, the current one is a drop in the ocean. One analyst summarized:
“We’ve experienced 2018 & 2019. This is nothing.”
If the bears manage to take hold of the market, bitcoin might be in for what the month of March always offers, major corrections. Another analyst tweeted:
“Approaching bounce region for Bitcoin. I think we’re close now. Resistance zone at $48,500 and $51,000.”
Based on previous reports, whale sell-offs and natural market cycles are the main issues that may explain the downturn range movement.