Bitcoin threatens $ 38,000 as the March 2020 three-day chart suggests Covid’s crash repeat

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

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

The 3-day chart can be a weekly “precursor”

Data from Cointelegraph Markets Pro and TradingView show that BTC / USD is circulating $ 39,000 after several attempts to break the $ 38,000 support.

The pair also saw a short-term surge of over $ 40,000 on Friday, thanks to geopolitical developments, but nevertheless this continued for minutes until the previous situation returned.

Such a “fake out” to a higher level, which ended with Bitcoin’s complete round and clearing both short and long positions, was already a familiar behavior for market participants this month. ..

But now, lower timeframes are beginning to show signs that a more significant downtrend may be imminent.

“Three-day BTC candles flirting at 200MA for the first time since Covid’s crash.” Analytical Resources MaterialIndicators caveat Twitter followers of the day.

“If this is a precursor to a weekly candle, make sure you have enough powder to take advantage of your next purchase opportunity. That bounce can change your life.”

The 200-week moving average is now just above $ 20,000 and is still rising, but it has served as a historic bottom zone throughout Bitcoin’s lifetime and has never been violated.

BTC / USD 200MA 1 Week Candlestick Chart (Bitstamp) Source: TradingView

To meet that, we need to reduce the current spot price by 50% and the record high by 70%. This is what BTC / USD has achieved in the past.

For example, in the Covid crash, after a 60% drop in a few days, a similarly strong reversal launched a new price paradigm later this year.

Bitcoin continued to be at the mercy of the stock market during the week, but they tend to keep weekly losses on the S & P 500 and Nasdaq to 2.9% and 3.5%, respectively.

Earlier, popular trader Pentoshi clearly stated that he believed that a Wall Street Crash-style event could dominate the market this year.

Big and small BTC bets continue to flow

On the plus side, whale buy-ins and small investor wallet growth provided a reason for long-term Hodler to be well.

Related: Bitcoin Derivatives Indicators Reflect Trader’s Neutral Feelings, But Anything Can Happen

As Cointelegraph reported, 30,000 BTC left Coinbase on Friday, but exchange reserves mimicked the decline seen in July and September last year — just before Bitcoin made a significant price increase.

“The 10-100 BTC wallets are piled up like crazy and their supply is parabolic,” said Lex Moskovski, CEO of Moskovski Capital. Added About the wallet, citing data from the on-chain analytics company Glassnode.

“These guys correctly sold the meat of the Bitcoin move between $ 10,000 and $ 50,000.”

The attached graph shows that the percentage of BTC supply currently held by an entity (one or more wallets that are supposed to have the same owner) is the highest in a year.

10-100 BTC Annotated Chart Balanced Entity Holds Bitcoin Supply Ratio Source: Lex Moskovski / Twitter