Bitcoin threatens $38K as 3-day chart hints at March 2020 Covid crash repeat

Bitcoin (BTC), which was also tested overnight at $38,000, came as uncertainty among traders began the weekend.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

A 3-day chart could be a “precursor” to weekly

Cointelegraph Markets Pro and TradingView data showed that BTC/USD was hovering around $39,000, despite several attempts to break the $38,000 support.

Geopolitical developments had also contributed to a temporary rise in the pair’s value above $40,000 on Friday, but this only lasted a few minutes before the old status quo was restored.

Market participants were already used to such “fakeouts” at higher levels, which led to Bitcoin closing its circle and liquidating all short and long positions.

However, signs were starting to emerge that a deeper downtrend might be on the horizon in lower timeframes.

Material Indicators, an analytics resource, warned Twitter users that 3 Day BTC candles were flirting with 200 MA for first time since the Covid crash.

This is a preview of what the Weekly candle will do. Make sure you have enough powder in your bag to make the most of the buying opportunity. This bounce could change your life.

The 200-week moving mean, which is currently at $20,000, and climbing, has served as the historical bottom zone for Bitcoin throughout its history and has not been broken.

BTC/USD 1-week Candle Chart (Bitstamp), with 200MA. Source: TradingView

It would take a drop of 50% at the spot price and 70% at all-time highs to meet it — something that BTC/USD has achieved in the past.

For example, the Covid crash saw a 60% drop in just days, before a strong reversal launched a new price paradigm later that year.

Bitcoin was at the mercy stock markets throughout the week. However, these trending down towards cap 2.9% and 3.5% weekly loss for the S&P 500, and Nasdaq, respectively.

Pentoshi, a well-known trader, had previously stated that he believed that Wall Street Crash-style events could be enacted this year.

BTC bets of all sizes continue to flow in

Whale buy-ins and small investor wallet growth were positive signs for long-term hodlers.

Related: The Bitcoin derivatives metrics reflect traders neutral sentiment. But, anything can happen

Cointelegraph reported that 30,000 BTC had left Coinbase Friday. This was immediately after Bitcoin’s significant price rises.

Today, a big smart whale moved 24,000BTC. Transactions like these usually signify OTC trading. Good sign for $BTC
— Whalemap (@whale_map), March 11, 2022

“10-100 BTC wallets stack like crazy, their supply has getting parabolic,” Lex Moskovski (CEO of Moskovski Capital) said about wallets, citing data provided by Glassnode, an on-chain analytics firm.

“These guys sold the meat of the $10k-50k Bitcoin Move correctly.”

A chart was attached that showed the highest percentage of BTC supply held by entities, one or more wallets presumed to have the same owner.

Annotated chart shows the Bitcoin supply percentage of entities holding a balance of 10100 BTC. Source: Lex Moskovski/Twitter