Monitoring Bitcoin Price Levels Below $21.6K

Bitcoin (BTC) has reached a multi-week support level as of the March 9 Wall Street open, sparking concerns about a potential further drop in BTC price.

Trader Anticipates $19,700 as a Possible Scenario

Data from Cointelegraph Markets Pro and TradingView reveals that BTC/USD is currently hovering around $21,800 on Bitstamp.

There is apprehension that if the $22,000 support level transitions into resistance, there might be additional weakening of support, according to well-known trader Pentoshi. He expressed his cautious stance despite acknowledging a favorable risk/reward at the moment.

“A move below this could lead to a challenging situation with the possibility of prices ranging between $19,700 and $20,500.”

Additionally, another trader and analyst, Nunya Bizniz, highlighted a bearish trend in Bitcoin’s 200-day exponential moving average (EMA), indicating that historical trends showed a potential for further declines.

BTC daily:

The price has crossed above the 200EMA post a low point.

Historically, this indicated a market bottom.

However, the price has now dropped below the 200EMA for the third time.

Referring to 2012 and 2015 patterns, is a price range of $17K to $15K plausible? pic.twitter.com/LOnA0RRHcO

— Nunya Bizniz (@Pladizow) March 9, 2023

The 200-day EMA is also a focal point for another renowned trader and commentator, Pierre, who suggests that if a breakdown occurs, BTC/USD could potentially descend to its 100-day MA without much hindrance.

Dollar Decline After Battling Resistance

Analysis of the Binance order book indicates a high level of bid and ask liquidity around the current Bitcoin price range.

As investors anticipate fresh U.S. job data, Material Indicators is preparing for potential market volatility, which has yet to materialize.

Here’s a #FireCharts 1.0 view of the #BTC order book on @binance ahead of the report. pic.twitter.com/DpuJJKEO4W

— Material Indicators (@MI_Algos) March 9, 2023

Despite the uncertainty in the crypto market, conventional markets such as Wall Street have displayed a positive trend, leading to a decline in the U.S. dollar that had earlier gained strength.

At the time of reporting, the U.S. Dollar Index (DXY) had decreased by 0.4%, while both the S&P 500 and Nasdaq Composite Index were aiming for a 0.5% increase.