Bitcoin fights for support as BTC price loses $46K yearly open

Market Analysis

Bitcoin (BTC) showed signs of recovery from an overnight rout on April 1 after the Ides of March caught up with bulls at the last minute.

Bitcoin faces “pivotal” moment

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD passing $45,500 on April 1’s Wall Street open.

The pair had dipped to near $44,000 into the March monthly close, the pullback fuelled by a combination of macro factors and actions by large-volume wallets.

European stocks suffered on the day, thanks to Russia threatening to cut off gas supplies while a vote by European Union lawmakers to ban “unhosted” wallets further soured the mood. 

While failing to spark a deeper retracement towards $40,000, the triggers left Bitcoin short of its all-important yearly open at $46,200 at the time of writing. This, in turn, left the door open for a return of the trading range in force since the beginning of 2022 with the yearly open as its ceiling.

“If we are supposed to go down, I think it’ll happen from here,” trader Crypto Ed summarized alongside a chart showing bullish and bearish continuations.

For popular Twitter account Material Indicators, short timeframes would be telling for the overall market trajectory.

Bitcoin had exited a rising wedge on the weekly chart, but had nonetheless failed to preserve the 50-week moving average (WMA) as support.

“Bitcoin is in a pivotal position,” it wrote on the day.

“BTC bulls lost the 50 WMA, but managed to reclaim the R/S flip above the structure. Volatility resides on either side of the range. Watching for the restests.”

April known not to disappoint

Unlike March, April is a historically successful month for Bitcoin, leaving this year with much to live up to.

Related: Bitcoin ‘dormant’ for 7+ years moved right before BTC price dropped 5%

According to data from on-chain analytics resource Coinglass, BTC/USD has never lost more than 3.46% in April, with maximum gains at 50%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.

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