{"id":84,"date":"2021-03-27T22:54:55","date_gmt":"2021-03-27T22:54:55","guid":{"rendered":"https:\/\/cryptoheretostay.com\/2021\/02\/27\/is-bitcoin-at-risk-of-another-drop-below-40k-in-a-historically-corrective-march\/"},"modified":"2021-06-08T07:50:09","modified_gmt":"2021-06-08T07:50:09","slug":"is-bitcoin-at-risk-of-another-drop-below-40k-in-a-historically-corrective-march","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=84","title":{"rendered":"Is Bitcoin at risk of another drop below $40K in a historically corrective March?"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) has seen a corrective week as the price dropped from $58,000 to $44,000 in a matter of days. This dropdown caused a panic reaction across the markets as the euphoria was immediately halted.<\/p>\n<p>For instance, the Crypto Fear and Greed Index plunged to monthly lows of 56 after being above 90, or &#8220;extreme greed&#8221; for an entire month.&nbsp;<\/p>\n<p><em>Crypto Fear &amp; Greed Index. Source: Alternative.me<\/em><\/p>\n<p>However, such a panic reaction is unwarranted because corrections appear frequently in a bull market as a &#8220;reset&#8221; before continuation. This is organic and healthy and offers a good opportunity for traders and investors to buy the dip.<\/p>\n<h2>Rejection at $52,000 indicates further weakness<\/h2>\n<p><em>BTC\/USDT 4-hour chart. Source: <\/em><em>TradingView<\/em><\/p>\n<p>The 4-hour chart shows an apparent downtrend since the previous high at $58,000. This high could be the top for the coming months, a period that may see a more prolonged correction.<\/p>\n<p>However, the price action since this top at $58,000 indicates weakness as every support level flips into resistance, indicating further weakness.<\/p>\n<p>The chart shows these flips, where the $55,000 level was the first one. After that, the price of Bitcoin dropped significantly to the support zone around $45,000. This support zone held and resulted in a strong bounce toward $52,000.<\/p>\n<p>But, unfortunately for the bulls, this level wasn&#8217;t broken and instead saw a rejection, confirming further weakness across the market and more downside for BTC price.&nbsp;<\/p>\n<p>This now paints a clear picture of the critical levels to watch. Ideally, the support zone between $42,500-$44,000 has to hold for further upward momentum. If it fails, further weakness can be expected toward the $37,500-$39,000 level.<\/p>\n<p>But if the $42,500-44,000 support zone holds, higher prices can be expected once Bitcoin breaks above the resistance between $50,000 and $51,000.<\/p>\n<h2>The bullish structure is still intact<\/h2>\n<p><em>BTC\/USD 1-day chart. Source: <\/em><em>TradingView&nbsp;<\/em><\/p>\n<p>While the lower timeframes indicate weakness for BTC\/USD, the higher timeframes suggest a healthy correction. The market construction is still very bullish, as the chart above shows.<\/p>\n<p>The previous top was at $42,000, after which the new support was established at $30,000. This last top was easily broken as Bitcoin\u2019s price accelerated to the $58,000 high. Hence, a correction to even $37,000 could be classified as healthy and organic in this type of bull market.<\/p>\n<p>Simply put, as long as BTC holds above the $30,000 low of January 2021, the market can be classified as bullish.<\/p>\n<h2>March is often a corrective month<\/h2>\n<p><em>XBT\/USD 1-week candle chart. Source: Tradingview<\/em><\/p>\n<p>History shows that March isn\u2019t the most bullish month for the cryptocurrency market. In recent years, corrections have been seen in March. Specifically, corrections of 15%-60% happened in 2015, 2016, 2017, 2018, and 2020.<\/p>\n<p>The latest crash was caused by the Covid-19 pandemic and could be classified as a &#8220;black swan.&#8221; Nevertheless, corrections tend to happen in March and this year could also see another pullback.<\/p>\n<p>Therefore, corrections can last for several weeks and are frequently not completed in just one drop. Hence, a correction toward the $35,000-$40,000 is still on the table.<\/p>\n<p><em>XBT\/USD 1-week chart. Source: <\/em><em>TradingView<\/em><\/p>\n<p>The primary indicator to watch for this is the 21-Week MA. Often, corrections tend to move toward this line as a key point for a potential reversal. Therefore, in the coming weeks, this 21-Week MA could provide support in the correction.<\/p>\n<p>Currently, the 21-Week MA is around $28,000, though this should climb up in the coming weeks toward $33,000-35,000.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><em>author<\/em><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p><a href=\"https:\/\/cointelegraph.com\/news\/is-bitcoin-at-risk-of-another-drop-below-40k-in-a-historically-corrective-march\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) has seen a corrective week as the price dropped from $58,000 to $44,000 in a matter of days. This dropdown caused a panic reaction across the markets as the euphoria was immediately halted. For instance, the Crypto Fear and Greed Index plunged to monthly lows of 56 after being above 90, or &#8220;extreme [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":85,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-84","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/84","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=84"}],"version-history":[{"count":2,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/84\/revisions"}],"predecessor-version":[{"id":87,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/84\/revisions\/87"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/85"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=84"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=84"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=84"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}