- Bitcoin may drop to $73K by April 1 before turning bullish again, with key support at the blue channel and $80.5K.
- A bearish engulfing candle on the three-day chart signals potential retracement to $73K, with $80.5K as the first support level.
- Bitcoin’s test of the 200-day moving average is crucial for maintaining bullish momentum, with a failure to hold it risking further downside.
Bitcoin has been ranging and could fall to $73,000 level by April 1 before turning bullish again. In a recent post on X, Egrag pointed at a critical technical pattern that indicates that the BTC/USD pair may retrace to the downside before continuing to the upside shortly.
Key Support at $73K
On the three-day chart, Egrag indicated that, Bitcoin is in a bearish engulfing candle formation. This pattern generally indicates a chance to change the trend and, therefore, increase the risk of a short-term reversal. According to him, it could reach the $80,500 level before possibly touching $73,000 in what he refers to as the blue channel, a crucial support level.
While he realized that such an approach made nan-seconds based-predictions possible, he also suggested that sharing these insights with the world is already helpful, even if they do not turn out to be exactly on the mark. He pointed out the fact that the blue channel is instrumental in identifying the strength and longevity of the current trend in BTC, and therefore a good level for traders to keep an eye on.
Bitcoin’s 200-Day Moving Average Test
Daan Crypto Trades identified that BTC has touched on the 200-day moving average on the daily basis. This is a technical major level and retests do not happen in the middle of an upwards trend or bull market. He said that that sort of support is necessary for the continuation of the bullish pattern for Bitcoin, noting that, on the other hand, breaching this level could result in renewed bearish pressure.
However, most experts have not given up hope of the positive long-term outlook for Bitcoin price. In case BTC falls to $73,000 it will be considered as the buy target for those who are waiting for an increased price jump. Since the initial recovery was highly bullish, typical pullbacks during an uptrend have been bullish in the past.
Bitcoin has performed pretty well in the last couple of months The retracement is a normal part of the process in the bull market. Some important levels that traders will keenly observe for the next couple of weeks are whether or not BTC can sustain above the blue channel and the daily 200 moving average. As of writing, BTC stands at $84,001 which is down by 9.03% in the past 24 hours.
While some analysts are anticipating a chance for Bitcoin to have a healthy correction, some are of the view that it has a chance of going even further up without correcting significantly. The next few weeks will therefore be important in shaping the short-term movements of Bitcoin and the focus will be on whether the cryptocurrency will retest these levels or not.
