The price of Bitcoin ( BTC ) failed to cross the psychological resistance of 50000 USD over the weekend and fell below the 48000 USD level on March 6.
Now traders are watching to see if BTC / USD can break above the $50000 level to resume the bull cycle. Conversely, a drop below the recent lows below $46,000 is likely to open the door to new lower lows, which could threaten the bull market that has been going on for almost a year, at least in the short to medium term.
Pseudonymous trader Rekt Capital has pointed to similar price levels to watch for. If BTC fails to maintain its current level above $46,000, the trader expects Bitcoin to fall somewhere in the area between $38,000 and $45,000, even though Bitcoin has seen higher lows in recent days.
One of the main factors likely causing the current downward pressure on prices is the increase in whale activity. Data from CryptoQuant shows an increase in large transactions on exchanges on March 6, although miner activity remains relatively low.
As shown in the chart below, previous increases in the number of whales moving funds to exchanges coincided with declines in the bitcoin price on March 3-4.
Bitcoin is also facing downward pressure from adverse macroeconomic conditions. A sharp spike in 10-year U.S. Treasury bond yields and a pullback by banks in tech stocks, in particular, are weighing on cryptocurrency prices as investors flee from risk on assets.
