Bitcoin is experiencing a bear market with a significant drop from its all-time high. Currently trading at $83,000, it is critical to watch the $72,253 level, which indicates potential further declines. Technical patterns and external catalysts, including lunar eclipses and political developments, suggest possible bullish reversals in the near future.

The price of Bitcoin has entered a significant bear market following a decline of over 25% from its peak of $109,200 earlier this year, with the current trading price around $83,000 after reaching a low of $76,500 this week. Technical analysis has identified $72,250 as a critical support level for Bitcoin’s price.

If Bitcoin falls below $72,253, it risks further declines, as this threshold aligns with the 61.8% Fibonacci Retracement level. This retracement, derived from the lowest point in August of last year to this year’s peak, is vital as it represents the golden ratio, often marking where rebounds occur. Additionally, this aligns with the highest price point in March 2024, establishing a break-and-retest pattern that is typically seen as a continuation signal for bullish trends.

Looking forward, several catalysts could facilitate a Bitcoin rebound in the coming weeks. The daily chart has illustrated a bullish engulfing pattern, characterized by a bullish candle enclosing a bearish one, which traditionally indicates a positive market trend. Furthermore, the approaching blood worm moon lunar eclipse may stimulate a bullish breakout in Bitcoin and other cryptocurrencies. Analyst Crypto Damus has suggested a potential decline leading up to the March 13/14 eclipse, predicting it could create a localized bottom for Bitcoin prices.

Additionally, the potential easing of tariff threats by Donald Trump, as equity markets experience downturns, might support the market. This week, key indices such as the Dow Jones, Nasdaq 100, and S&P 500 have underperformed globally, and Trump views stock market performance as a key indicator of his success.

Moreover, the crypto fear and greed index has shown extreme fear, a condition historically considered advantageous for buyers as strategic investors tend to accumulate during such times. The current crypto downturn has also been linked to a previous extreme greed index reading of 88. Furthermore, Bitcoin may benefit from the continued decline in US bond yields, which increases the prospect of interest rate cuts by the Federal Reserve.

In summary, Bitcoin currently faces crucial support at $72,253, with the risk of further decline if this level is breached. Crucial factors such as bullish technical patterns, cosmic events, political influences, and investor sentiment could potentially lead to a price rebound. Observing these dynamics will be important for assessing Bitcoin’s future trajectory.

Original Source: www.banklesstimes.com

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