Bitcoin Threatens $38,000 As 3-Day Chart Suggests Repeat March 2020 Crash

 Bitcoin (BTC) retested $38,000 overnight as the weekend kicked off with uncertainty among traders.


Data from TradingView shows BTC/USD hovering around $39,000 after multiple attempts to break the $38,000 support.

The pair also saw a brief spike above $40,000 on Friday thanks to geopolitical developments, however this lasted only a few minutes before the previous status quo reverted.

Such “faking” to higher levels – ending with Bitcoin fully appearing and liquidating both short and long positions – has been familiar behavior for market participants this month. .

Now, however, the lower time frames have begun to show signs of a more significant downtrend that may be imminent.

“The 3-day BTC candle is hitting the 200 MA for the first time since the Covid crash,” analytical resource Material Indicators warned Twitter followers for the day.

The 200-week moving average, currently just above $20,000, has acted as a historic bottom throughout Bitcoin's life and has never been breached.

Meeting it would require BTC to drop 50% from current spot prices and 70% from all-time highs – something BTC has done in the past.

The Covid crash, for example, saw a 60% drop in just a few days before an equally strong reversal started a new price pattern later in the year.

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