Bitcoin (BTC) Price to Retrace $29k Level? Here Are the levels To Watch

Over the last week, the world’s most valuable cryptocurrency saw some volatile days, as it faced its first major geopolitical battle in its brief existence. On Feb. 26, Bitcoin began a tense weekend at roughly $39,000, following an overnight rise that saw the price return to $40,000 for a brief period.

Extending the fall witnessed over the weekend, the crypto market plummeted on Monday following an escalation of war between Ukraine and Russia. At Press time, the global cryptocurrency market cap stood at $1.71 trillion, with a drop of about 2% in the last 24 hours.

At present, as Bitcoin Price failed to clear the $38,800 resistance, the flagship currency initiated a downside correction. The Immediate support lies at $37,200. However, in an extended downtrend, the price might plunge $36k and even test $35k Level.

If BTC/USD Shows Some sign of Recovery, the Price may test the main resistance at $38k. On a successful breakout, BTC price could even attempt a clear move above $40,000.

What Lies Ahead for Bitcoin?

Following Bitcoin’s impressive surge from $35,000 to $40,000 in just 48 hours, a handful of well-known crypto strategists are predicting what lies ahead for the cryptocurrency.

The trigger behind Bitcoin’s big recovery in the last two days, according to pseudonymous crypto expert Crediblel, was an “aggressive short squeeze.” If BTC will retrace the squeeze, he believes we will bottom between $29,000 and $32,000, as he predicted in my last post. A high timeframe close over monthly resistance at any point suggests that a bottom has been confirmed.

A short squeeze occurs when traders who borrow units of an asset at a specific price in the hopes of selling them for a lower price and pocketing the difference (short) are forced to purchase them back as the transaction goes against their bias.

Following Russia’s announcement of military action against Ukraine, traders were wagering that Bitcoin will breach the $35,000 barrier. Instead, the king cryptocurrency rose, compelling short traders to buy over $300 million worth of Bitcoin on February 24th, propelling the rally (short squeeze) to $40,000 on February 26th.

Bitcoin has already created a short-term range between $35,000 and $44,000, according to fellow cryptocurrency expert Smart Contracter.

“Really big BTC reversal candle today. Not sure if bottom or not but this should be a tradeable range for a little bit.”

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