- Bitcoin fell below $84K after being rejected at $89K, with a potential decline to $71K on the cards.
- The current price is $83,089, with a $1.65T market cap and $17.07B trading volume.
- Analyst Astronomer sees $83K–$84K as key support, with a caution of further downside risk.
Bitcoin (BTC) recently tried to test a significant resistance level but got rejected, remaining below its daily 200MA/EMA. While there are intraday possibilities, Daan Crypto is being cautious due to potential market volatility. With April 2 approaching, traders anticipate possible market alterations and would prefer to wait before making significant trades.
Last week, Bitcoin recorded one of its strongest performances, rallying above $88,000. The leading cryptocurrency, however, experienced a steep correction on March 28, following the release of February’s core inflation data. The decline has subsequently caused jitters among traders, with BTC exchanging hands below $84,000, triggering market-wide fears of further downside movement.
Is BTC At Risk Of A Decline To $71,000?
Blockchain analytics firm Glassnode recently shared insights into investor behavior, shedding light on potential Bitcoin price movements. The report highlights key price levels that can determine if Bitcoin will stabilize or experience further downward pressure over the coming days.
According to Glassnode, traders acquired approximately 15,000 BTC at the $78,000 level on March 10 before offloading at the recent local peak of $87,000. This redistribution has significantly thinned out Bitcoin’s supply cushion at $78,000, potentially weakening support at this level. Without strong buyer interest, BTC could be vulnerable to a deeper correction.
As of the time of writing, Bitcoin is priced at $83,089 with a market cap of $1.65 trillion and a 24-hour trading volume of $17.07 billion. Its intraday range of $82,140 to $85,503 shows bearish sentiment across timeframes. Investors are watching these prices closely, anticipating key support levels to act as a cushion against sell pressure.
CME Gap Closure And Potential Bitcoin Reversal
Bitcoin has experienced substantial volatility this year, achieving record highs before facing sharp pullbacks. The recent rejection at near $89,000 has led crypto analyst Astronomer to identify $83,000 – $84,000 as a strong support zone. This also aligns with the CME gap closure, a pattern in BTC Futures in which price gaps left on weekends tend to get filled.
Astronomer anticipates that BTC will consolidate at this support level before attempting a bounce. In the past, a bearish Friday close has usually resulted in red Mondays or Tuesdays, adding to the possibility of additional downside pressure. The analyst also mentions the pre-New York Open (NYO) stage, providing room for an intraday reversal before market sentiment is in full effect.
However, with a lack of liquidations and untested support zones, Astronomer predicts a potential late-night dump in the NYO trading session. He suggested that Bitcoin’s rejection at $89,000 suggests a weaker local bullish structure. In case of further correction, Bitcoin can retest the $81,400 – $82,400 support zone before the price bounce.
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