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Bitcoin Still Faces Pressure After Weekend Downturn, Key Levels to Watch

Bitcoin Still Faces Pressure After Weekend Downturn, Key Levels to Watch

Bitcoin (BTC) has experienced a rollercoaster ride in recent days, with its price dropping over 4% in the last 24 hours. Despite a temporary recovery around $63,000, analysts are closely watching key support and resistance levels to determine the coin’s next move.

Weekend Slump Blamed on Taxes and Geopolitics

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Experts like Arthur Hayes attribute the price drop to a confluence of factors:

  • US Tax Deadline: Mid-April tax payments in the US reportedly drained liquidity from the market, impacting crypto assets.
  • Middle East Tensions: Rising tensions between Israel and Iran over the weekend caused investors to move to safer havens.

Bitcoin Decouples from Gold

Previously, Bitcoin’s price held a positive correlation with gold. However, the weekend saw a decoupling, with Bitcoin dropping while gold prices rose.

Bitcoin Mining Industry Unfazed by Halving Fears

The upcoming Bitcoin halving, scheduled for April 20th, has caused jitters in the market. However, some analysts believe these fears are unfounded. Bitcoin mining company share prices have dropped significantly, likely due to investor panic.

Industry experts like Mitchell Askew from Blockware Solutions argue that post-halving profitability concerns may be overblown.

BTC/USD Technical Analysis

Popular analyst Ali Martinez suggests Bitcoin is consolidating within a channel, with a breakout on either side potentially leading to a significant price swing.

  • Bullish breakout: $79,000 – $86,000 range
  • Bearish breakout: $51,600 – $56,200 range

Support and Resistance: Other analysts identify crucial support and resistance zones:

  • Support: $61,000 (critical), $62,800, $63,000
  • Resistance: $64,250, $64,850, $65,000, $67,000 (major)

Overall, the Bitcoin market remains in a state of flux. While technical indicators suggest potential for either bullish or bearish breakouts, geopolitical tensions and upcoming events like the halving add uncertainty. Keeping a close eye on support and resistance levels will be crucial for understanding Bitcoin’s short-term price trajectory.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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