Bitcoin Risks Revisiting Sub-$60,000 Levels

Bitcoin Risks Revisiting Sub-$60,000 Levels

Bitcoin bulls are embroiled in a tough battle to stem the cryptocurrency’s sales.

Bitcoin is reaching new intraweek lows on March 19th: where could BTC’s price action end up?

This is the question traders and analysts are asking as bearish momentum continues across all cryptocurrency markets.

Following successive new all-time highs, bitcoin is testing the resilience of levels that have only recently been reclaimed as support. So far, a reliable floor has not been established.

Thus, market observers are drawing more fundamental lines in the sand, while anticipating a possible relief bounce.

Some argue that the U.S. Federal Reserve’s decision on interest rates, scheduled for March 20th, will be a pivotal event that will relieve pressure on oversold crypto assets. A suppression of risk assets is often observed in the run-up to previous meetings of the Federal Open Market Committee (FOMC).

Cointelegraph takes a look at some popular predictions regarding the short-term BTC/USD pair.

BTC’s “Key Support” Extends Towards $50,000
Bitcoin is swiftly heading towards the $60,000 zone, a repeat of the movement that followed its first new all-time high earlier this month.

This is a critical point on traders’ radars, and one that has not received a convincing retest.

“I think we’ll at least get to sweep last week’s low,” summarized popular trader George on X (formerly Twitter).

Trader Ali used the Unspent Realized Price Distribution (URPD) to show where the current set of unspent transaction outputs, or UTXOs, was created. This gives an insight into the cost basis and areas of interest when it comes to support and resistance.

“Some of the key bitcoin support levels to watch are $61,100, $56,685, and $51,530,” he explained, examining the ground below $60,000.

Using Fibonacci retracement levels, analyst Mark Cullen highlighted a series of support levels that could come into play.

A chart uploaded to X further noted a “bullish order block” of bids right at the current spot price below $64,000.

“Looking at the high-volume nodes and Fibonacci levels, I think we might see the end of the correction. It will also depend on how the FOMC meeting unfolds tomorrow,” Cullen wrote as part of the accompanying commentary.

FOMC Seen as a “Local Bottom for Risk”
As for the FOMC, it remains the week’s primary macroeconomic focal point, not just for bitcoin and altcoins, but for the entire spectrum of risk assets.

“The lower we go now, the higher we’ll rise when Jerome stops speaking on Wednesday,” predicted financial commentator Tedtalksmacro.

Tedtalksmacro suggested that, given the sticky nature of inflation, Fed Chairman Jerome Powell would try to give a stern tone, resetting any premature market expectation of a rate cut.

“It’s very likely his speech will be the local bottom for risk,” he concluded.

The BTC/USD pair is currently volatile around $64,000, as confirmed by the latest data from Cointelegraph Markets Pro and TradingView.

Zezi Ifore