(Kitco News) – Cryptocurrency traders finally get a chance to take a break, evaluate their portfolios and make necessary changes as Bitcoin (BTC) bulls broke their onslaught on Monday to take to the pastures near support at $67,000. Dollars to graze.
Stocks traded higher, particularly in the technology sector, as investors brushed aside concerns about longer-term higher interest rates ahead of this week's Federal Open Market Committee meeting, where the central bank will decide on interest rates.
The CME FedWatch tool shows the “no change” expectation is at 99%, so traders have instead turned to headlines to determine their next moves. Given the positive developments from NVIDIA and Google, many saw this as a good opportunity to dive back into the markets, which led to a positive finish in the major indices.
At the closing bell, the S&P, Dow and Nasdaq finished up 0.63%, 0.20% and 0.82%, respectively.
Data provided by TradingView shows that Bitcoin trading saw volatile trading near $68,000 in the early hours of Monday before bears managed to push it down to a low of $66,575 in the afternoon. They are now in a battle with the bulls for control of the price action, and at the time of writing, BTC is trading at $67,530, down 1.05% on the 24-hour chart.
BTC/USD chart from TradingView
According to analysts at Crypto Chiefs, the 2021 all-time high is now “acting as resistance (above $69,000) as price has been accepted back below it,” and they “would like to see 4-hour acceptance above $69,000, like this.” well we can.” Then you see a rise in the DM VAH at $71.8k.”
“As long as this does not happen, we cannot rule out a downward trend,” the analysts warned.
And there's a good chance there will be a move lower, because tomorrow “Bitcoin will officially enter the 'danger zone' (orange), where historic pre-halving retracements began,” market analyst Rekt Capital said in a post on X .
“Historically, Bitcoin has performed pre-halving retracements 14 to 28 days before the halving,” said Rekt Capital. “In 2020, this decline was -20% and started 14 days before the halving. This pullback lasted only a few days but preceded a 150+ day re-accumulation period before Bitcoin broke out into its parabolic uptrend.”
“In 2016, the PreHalving retrace was -40% and started 28 days before the halving,” he added. “This pullback lasted a total of 8 weeks before Bitcoin broke out into a parabolic uptrend. Currently, $BTC is about 29 days away from the halving and is down -11% last week.”
MN Trading founder Michaël van de Poppe said he believes Bitcoin's pre-halving uptrend was exploited and warned that a BTC price below $60,000 is still possible as traders begin to to switch to altcoins.
I think #Bitcoin captured most of the upside before the halving.
Maybe liquidity will be consumed near the highs, but I think we will focus on altcoins in the coming period.
Ultimately, Bitcoin <$60,000 is still a potential Bitcoin. pic.twitter.com/d2yEapwDdL
– Michaël van de Poppe (@CryptoMichNL) March 17, 2024
While the potential for a deeper decline remains, market analyst Mustache has identified signs that the weakness will be temporary as Bitcoin faces a parabolic uptrend.
#Bitcoin
Sometimes you have to dig a little deeper to figure out where $BTC is in the cycle.
Whenever $BTC broke the blue line in the Mayer Multiple Indicator AND was near/or above the ATH at the same time, the parabolic move started a short time later.🔍🔥 pic.twitter.com/RvX6OhAFzW
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) March 18, 2024
Altcoins are falling, led by meme coins
Altcoins largely followed Bitcoin's downward trend on Monday, as the vast majority of tokens in the top 200 posted losses.
Mantra (OM) was the biggest trend driver, rising 37.8% to $0.796, while JOE (JOE) gained 32.2% and Jito (JTO) gained 18%. Book of Meme (MEME) led the losers with a 32.5% decline, followed by a 16.6% loss for Floki (FLOKI) and a 14.5% decline for Helium Mobile (MOBILE).
The total cryptocurrency market cap is currently $2.54 trillion, and Bitcoin’s dominance rate is 52.1%.
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