Although the bull market is expected to return, the euphoric calls for it may be too early after the failure of Bitcoin (BTC), bulls to push the price above $46,000 on March 31. Analysts expect a lower support test at $45,000 despite the current pullback.
Cointelegraph Markets Pro and TradingView data show that bears rejected today’s attempt at pushing the price of Bitcoin above $47,500. This resulted in the cryptocurrency plummeting to $45,500.
BTC/USDT 1-day chart. Source: TradingView
Here are the views of market analysts on the price pullback for Bitcoin and whether traders should prepare for losses or a higher move.
This is a temporary correction.
Some traders weren’t caught flatfooted by Bitcoin’s drop on Thursday. This included market analyst and pseudonymous Twitter User ‘IncomeSharks, who posted this chart before the price drop, noting that the “4h look like it wants to correct some.”
BTC/USDT 4-hour chart. Source: Twitter
“This isn’t me being bearish. I’m simply noticing 3 reasons why a little correction would make sense. We will likely re-test the breakout of Supertrend, and then we can bounce back at the trend line. It’s a good time to profit.
BTC Searches for Support Between $42,000 and $45,000
Market analyst and economist Caleb Franzen discussed the next levels of support that are worth watching. He posted the following chart, showing the 21-day (55-day) and 200-day exponential moving Averages (EMA), for Bitcoin. Franzen stated, “Sometimes it can be helpful to cut out all noise, remove price structure analysis and just look at exponential moving averages.”
BTC/USD 1-day chart. Source: Twitter
“All of these are potential Bitcoin support, giving us a range between $42,000 and $45,000.”
Related: Bitcoin derivatives metrics support a move up to $48K but only after lower support retest
Not necessary to consolidate sideways
Analyst and pseudonymous Twitter User ‘BTCFuel’ provided a more macro view of what Bitcoin will do next. He posted the following chart comparing BTC price action in 2012 and its current movement. He suggested that Bitcoin should see some sideways consolidation after being up 28% over the past 2 weeks and breaking a major resistance.
BTC/USD Price in 2012 vs. BTC/USD Price in 2022. Source: Twitter
“I believe that Bitcoin will continue to move slowly and steadily up in the coming months like it did in 2012. Altcoins, however, will go crazy.”
The total cryptocurrency market is now worth $2.087 trillion. Bitcoin’s dominance rate at 41.6%.
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