There’s was no rest for weary crypto traders on March 10 as a blistering 7.9% CPI print emerged as the headline of the day, putting pressure on global financial markets and erasing the previous day’s gains in Bitcoin (BTC) as the price fell back below $40,000.
Data from Cointelegraph Markets Pro and TradingView shows that the BTC sell-off kicked off in the early trading hours on Thursday and escalated into midday with the price hitting a low of $38,562 before dip buyers bid it back above support at $39,000.
BTC/USDT 1-day chart. Source: TradingView
Here’s what analysts have to say about the ongoing see-saw price action for BTC and what levels to keep an eye on for a bullish breakout or bearish downturn.
“Price compression precedes volatility”
Insight into the recent volatility for Bitcoin was offered by crypto trader and pseudonymous Twitter user ‘Rekt Capital’, who posted the following chart noting that “BTC is still consolidating between the green higher low support and the blue 50-week EMA resistance.”
BTC/USD 1-week chart. Source: Twitter
According to Rekt Capital, “the higher lows and lower highs are compressing price. Price compression precedes volatility.”
As for what it would take to reclaim the bullish narrative, Rekt Capital pointed to the green and blue exponential moving average (EMA) lines which have proved to be strong points of resistance over the past two weeks.
Rekt Captial said,
“To move higher inside its macro range, BTC needs to reclaim the two key bull market EMAs to confirm bullish momentum.”
BTC holders risk selling at a loss
The oscillating nature of BTC’s price action in recent weeks was discussed by research fund, Stack Funds, which noted in its current weekly report that “Bitcoin has whipsawed the past few weeks, trading within the $35,000 – $45,000 range with no strong directional momentum intact.”
According to Stack Funds, this recent price action “has been mainly news-driven” and the analysts see no relief in the near term as the conflict in Ukraine and the persistent rise of inflation continue to pose significant headwinds.
Evidence that traders have…
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