Convergence

Gems

Bitcoin

Divergence

Bitcoin price alongside most altcoins is having an exciting start to the week, rising above $65,000 for the first time in two years. The leading cryptocurrency continues to reward investors who seem to be on board for the long haul eyeing the moon, considering the impact of the halving due in April and positive sentiment backed by well-performing <a href="https://coingape.com/spot-bitcoin-etf-how-blackrock-and-fidelity-gobbled-up-79-on-inflows/" rel="noopener noreferrer nofollow">Bitcoin ETFs</a>.
Despite the bullish outlook, dips are not unusual during bull markets. Bitcoin price nosedived below $39,000 in January from highs around $48,000 as investors sold the ETF news after buying the approval rumor in Q4.
For that reason, this analysis aims to be critical of the prevailing market conditions to unearth possible reasons for a pullback to allow for re-accumulation ahead of a renewed upswing to new record highs.
<h2 id="span-class-s2-1-profit-taking-activities-span">1. Profit-Taking Activities&nbsp;</h2>
The majority of altcoins embarked on an upward trajectory last week and throughout the weekend while Bitcoin consolidated above established support at $64,000.
This consolidation allowed investors to take profits, redistributing to altcoins, especially large to mid-cap projects like&nbsp;<a href="https://coingape.com/shiba-inu-price-retraces-10-as-justin-sun-moves-20t-shib/" rel="noopener noreferrer nofollow">Shiba Inu</a>&nbsp;(SHIB) and&nbsp;<a href="https://coingape.com/bonk-pepe-floki-shib-price-reversal-soon-meme-coin-party-to-end/" rel="noopener noreferrer nofollow">Pepe</a>&nbsp;(PEPE). Pepe is among the latest coins to reach a new all-time high.
As Bitcoin approached the previous all-time high near $69,000, investors will likely consider selling for profit to dollar cost average (DCA) as the price corrects.
The behavior of&nbsp;<a href="https://coingape.com/bitcoin-btc-price-breaks-65k-ethereum-eth-tops-3500/" rel="noopener noreferrer nofollow">Bitcoin</a>&nbsp;in the range between $65,000 and $66,000 could also determine how investors choose to react this week. A steady rise above $66,000 could create FOMO, boosting BTC to approach an all-time high.
Selling pressure may rise if Bitcoin price wobbles and fails to close the day above $65,000. Several four-hour candle closes below this level would mean increasing selling pressure and the possibility of Bitcoin price testing support in the range between $63,500 and $64,000.
Recommended: <a href="https://coingape.com/markets/3-new-crypto-to-buy-gems-poised-to-outpace-bitcoin-pre-halving/" target="_blank" rel="noopener noreferrer nofollow">3 New Crypto To Buy Gems Poised To Outpace Bitcoin Pre-Halving</a>
<h2 class="p1" id="2-potential-double-top-pattern-sell-off">2. Potential Double-Top Pattern Sell-Off</h2>
The largest cryptocurrency will be facing a new sell wall as it nears the record high. During the previous bull run in 2021, Bitcoin topped out around $69,000 leaving the $70,000 level untested.
Investors who purchased BTC at the peak of the last bull run may want to sell at the breakeven price, intensifying the selling pressure. In the absence of a correction due to enhanced sentiment, consolidation may take precedence. In other words, Bitcoin may rise to a new ATH followed by sideways doldrums between $60,000 and $70,000 going into the halving period.
<h2 class="p1" id="3-bitcoin-price-overbought-market-conditions">3. Bitcoin Price Overbought Market Conditions</h2>
Bitcoin has not slowed down the rally that started soon after January’s sell-off below $39,000 apart from short periods of consolidation for re-accumulation. The Relative Strength Index (RSI) is noticeably overbought at 86, observed on the four-hour chart. An RSI reading between 70 and 100 suggests that bulls are in control but a reversal may be approaching.
<figure id="attachment_184010" aria-describedby="caption-attachment-184010" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-184010" src="https://coingape.com/wp-content/uploads/2024/03/BTCUSD_2024-03-04_15-52-22.png" alt="Bitcoin price chart | Tradingview" width="2694" height="1444" srcset="https://coingape.com/wp-content/uploads/2024/03/BTCUSD_2024-03-04_15-52-22.png 2694w, https://coingape.com/wp-content/uploads/2024/03/BTCUSD_2024-03-04_15-52-22-300x161.png 300w, https://coingape.com/wp-content/uploads/2024/03/BTCUSD_2024-03-04_15-52-22-1224x656.png 1224w, https://coingape.com/wp-content/uploads/2024/03/BTCUSD_2024-03-04_15-52-22-768x412.png 768w, https://coingape.com/wp-content/uploads/2024/03/BTCUSD_2024-03-04_15-52-22-1536x823.png 1536w, https://coingape.com/wp-content/uploads/2024/03/BTCUSD_2024-03-04_15-52-22-2048x1098.png 2048w, https://coingape.com/wp-content/uploads/2024/03/BTCUSD_2024-03-04_15-52-22-150x80.png 150w" sizes="(max-width: 2694px) 100vw, 2694px">
 <figcaption id="caption-attachment-184010" class="wp-caption-text">
 Bitcoin price chart | Tradingview
 </figcaption>
</figure>
Any semblance of the RSI returning toward the neutral region would mean that a correction is due. Combined with other indicators like Moving Average Convergence Divergence (MACD), the RSI can be used to back the uptrend or in this case, a trend reversal.
If a correction materializes blockchain analytics platform IntoTheBlock, highlights the area between $61,211 and $63,166 to be&nbsp;<a href="https://coingape.com/crypto-stocks-rally-after-1-8b-bitcoin-eth-etf-inflow/" rel="noopener noreferrer nofollow">Bitcoin’s</a>&nbsp;strongest support.
<figure id="attachment_184011" aria-describedby="caption-attachment-184011" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-184011" src="https://coingape.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-at-16.17.24.png" alt="IntoTheBlock's Bitcoin IOMAP Chart" width="2360" height="924" srcset="https://coingape.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-at-16.17.24.png 2360w, https://coingape.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-at-16.17.24-300x117.png 300w, https://coingape.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-at-16.17.24-1224x479.png 1224w, https://coingape.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-at-16.17.24-768x301.png 768w, https://coingape.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-at-16.17.24-1536x601.png 1536w, https://coingape.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-at-16.17.24-2048x802.png 2048w, https://coingape.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-at-16.17.24-150x59.png 150w" sizes="(max-width: 2360px) 100vw, 2360px">
 <figcaption id="caption-attachment-184011" class="wp-caption-text">
 IntoTheBlock’s Bitcoin IOMAP Chart
 </figcaption>
</figure>
Approximately 1.38 million holders purchased 539k BTC at an average price of $62,086. Buying within this range could prove beneficial to bulls in the long run, considering the high impact on the price by the ETFs and the halving.
The post <a href="https://coingape.com/markets/reasons-why-bitcoin-price-poised-for-retrace-after-topping-65000/" rel="noopener noreferrer nofollow">Reasons Why Bitcoin Price Poised For Retrace After Topping $65,000</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Reasons Why Bitcoin Price Poised For Retrace After Topping $65,000

Table of Contents

Coingape News Media

Other articles published on Mar 4, 2024

Ethena 2 and ACI Propose Adding sUSDe to Aave V3 on Ethereum

Bitcoin NFTs make comeback in weekly sales, flipping Ethereum

Hong Kong’s SFC warns against impersonators of OSL Digital, HSKEX

ETF savings plans, explained

Coinbase Vs SEC: SEC Leverages New Ruling to Press Charges Against Coinbase

Uniswap Founder: Dapps Will Soon Handle Gas Fees On Behalf Of Clients

Join our free newsletter for daily crypto updates!