Last week (between March 31 and April 7), bitcoin’s bullish movement lost momentum, and the US$ 47,000 resistance was not broken. This caused the price of BTC to return to the US$ 43,000 level.
Source: TradingView
The drop influenced investor sentiment, which became more fearful of short-term bullish expectations. As a result, the fear & greed index retreated to the 34-point range (which represents almost 35% from the previous week).
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Source: alternative.me
According to Transfero, after this correction, the expectation is that the US$ 42.7 thousand support will not be broken so that the medium-term uptrend can continue to prevail.
“It could be that we will face again the same situation that happened during most of February when the price of BTC moved within a range between US$37.5 thousand and US$42.7 thousand. However, now the range would be between US$ US4 2.7 thousand and $47 thousand”, the analysts said.
Transfero considers that in the coming weeks, this condition may present a good moment for entry, in the US$ 42,700 range. Consequently, a good time for profit-taking would be at the US$ 47,000 level.
However, Transfero team warns that both the US$ 42.7 thousand support and the US$ 47 thousand resistance are indicators of high trading volume, and the breaking of both, closing below the lower (US$ 42.7 thousand) or above the higher (US$ 47 thousand) value may bring a turnaround or strengthening of the trend.
Source: coinmarketcap.com
Another critical aspect in this period was the bullish movement of altcoins, which Transfero had already highlighted last week. This rise impacted the dominance of BTC, which has diminished in recent weeks.
This is a sign that bitcoin’s “lateralization” may open up more space for altcoins, causing investors to move more alts, aiming for higher returns in a short period.
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