Rejection of bitcoin price at $39,000 and growing regulatory concerns drag market down again

Volatility and choppy prices continued to dominate the cryptocurrency market on March 7 and news that US President Joe Biden plans to sig...


Volatility and choppy prices continued to dominate the cryptocurrency market on March 7 and news that US President Joe Biden plans to sign an executive order later this week which will outline the government’s strategy for cryptocurrencies has been added to the list of factors affecting crypto prices.

Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin (BTC) bulls were thwarted in an attempt to regain support at $40,000 on Monday as revelations about the upcoming executive order and ongoing conflict in Ukraine sent the market down and sent BTC to a low of $37,155.

BTC/USDT 1-day chart. Source: Trading View

Here’s what several market analysts are saying about BTC’s outlook and whether or not crypto traders should prepare for an extended bear market.

Are there signs of surrender?

A bearish outlook for the current price action was described by pseudonymous crypto trader and Twitter user “Crypto Tony”, who job the following chart outlining the potential for capitulation into the low $20,000s for BTC if the current support levels break down.

BTC/USD 1-day chart. Source: Twitter

Crypto Tony said,

“Unless we start claiming some important supply areas, that’s something that needs to be taken into account. This choppy B wave is going to catch many off guard…”

Looking for a bounce to $36,000

A more optimistic view of the current weakness was offered by analyst and Cointelegraph contributor Michaƫl van de Poppe, who job the following chart depicting a possible pullback in the price of BTC towards the low range of $36,000.

BTC/USDT 4 hour chart. Source: Twitter

van de Poppe said,

“Well, Bitcoin is still correcting after a rejection at $39,200. Assuming we’re going to take the low for some liquidity before we have a chance to gain momentum to the top.

Technical proof that BTC price could soon mount a recovery was highlighted by crypto trader and host of The Wolf of All Streets podcast Scott Melker, who job the following chart noting that “My favorite signal is present – ​​bullish divergence with oversold RSI on the 4-hour chart.”

BTC/USD 4 hour chart. Source: Twitter

Melker said,

“That said, the price really needs to break above $39,600 to avoid a hidden bearish divergence, so it’s very hard to get too excited. These divs can build up a bit.

Related: Ethereum at Risk of Tumbling Below $2,000 as ETH Paints a Bearish ‘Symmetrical Triangle’ – Analyst

BTC can avoid a bear market above $29,000

An attempt to put those concerned about the possibility of a bear market at ease was made by crypto analyst and pseudonymous Twitter user “Plan C”, who posted the following chart and suggested that “people must stop spreading false information”.

BTC/USD accumulation zones. Source: Twitter

Plan C said,

“Bitcoin is NOT in a bear market. Above 29,000 = mid-cycle buildup. Below 29k = bear market. Since when do highs and lows occur in a bear market This is crypto, the traditional TA definitions of a bear market (

The overall cryptocurrency market capitalization now stands at $1.685 trillion and Bitcoin’s dominance rate is 42.3%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.