Bitcoin (BTC) approached a key weekly close on March 19 with traders concerned about a retest of lower levels.
Bitcoin bulls must “step in” to protect $26,000
After briefly tapping $28,000 into the weekend, a slow comedown through out-of-hours trading denied bulls a squeeze higher. This led market participants to weigh the likelihood of Bitcoin returning to test support.
“Holding my long position while we are above $25,500, but ultimately we lost $27,000 support so we are likely to come down and test around $26,100,” popular trader Crypto Tony told Twitter followers.
“The key is for the bulls to absolutely step in at that moment.”
Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, was optimistic on the short-term outlook, even as BTC/USD drifted lower over the weekend.
“Are we staying above $26,800? Answer is clear; yes. This means, trend will continue to last until $26,800 is lost. Looking for a final sweep into $28,300-28,900 and then reversal,” part of analysis on March 18 stated.
A subsequent post on the day nonetheless underscored the importance of nearby support just $300 below current spot price.
“$26,800 is crucial for Bitcoin,” Van de Poppe summarized.
“Had two tests now. If we get one more test, it will probably break and cause a deeper and harsh correction. Holding above -> $28,500 next.”
Divorcing the downtrend
On weekly timeframes, BTC/USD was still in line for an impressive candle close, having last acted around $27,000 in June 2022.
For trader and analyst Rekt Capital, there was additional cause for optimism thanks to Bitcoin potentially now leaving the intervening downtrend behind for good.
Several months later and #BTC has finally broken out from its Accumulation Range
— Rekt Capital (@rektcapital) March 18, 2023
“When an old multi-month BTC downtrend gets broken… A new $BTC multi-month uptrend emerges,” one of various weekend Twitter posts read.
Rekt Capital highlighted the ongoing significance of the 200-period moving average (MA) on weekly timeframes, this currently sitting at $25,350 and primed for a resistance/support flip.
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