BTCUSD refreshed early-March highs over the weekend, but then corrected rather sharply and continues to retreat on Monday. The price reached the levels marginally below the key $10,000 barrier which is a magnet for bulls during the last couple of weeks. This level also coincides with the 200-DMA, so it’s even tougher to break to the upside.
Many market participants blame recent Warren Buffett’s statement for the drop in price - the famous billionaire claimed bitcoin is worse than “rat poison squared.” However, the correction is more of a technical nature as the current retreat looks quite natural and healthy after the previous ascent, especially considering the importance and strength of the resistance formed by the $10,000 threshold.
Therefore, we expect the coin to resume the bullish bias after this pause, which will open new opportunities for long-term investors. In the near term, it is essential for bitcoin to keep above the support at $9,000, as a break below could fuel a deeper correction.
By Helen Rush
Senior Analyst at Capital Markets