Bitcoin (BTC) is currently hovering above the recently breached $74,000 resistance, positioning to reclaim price levels not seen since the fourth quarter of last year. However, this week’s activity is set to be turbulent, with market expert Virtual Bacon predicting it could be the “most volatile week in Bitcoin all year.”
Bear Market PrevailsThe critical 200-day simple moving average (SMA) sits at $93,000, while the 50-week SMA is around $98,000. The last lower high resistance is pegged at $94,000, creating a confluence of resistance in the $93,000 to $98,000 range.
“This isn’t me being bearish,” he stated, emphasizing that the analysis is grounded in numerical realities. “We remain in a bear market until BTC decisively breaks above the $94,000 to $98,000 resistance.”
Market Volatility Expected This WeekVirtual Bacon’s concern regarding the expected volatility this week is attributed to several volatility catalysts. The first is the Federal Open Market Committee (FOMC) meeting taking place from March 18-19.
Furthermore, the expiration of quarterly Bitcoin options on the same day enhances the potential for dramatic market movements. Current options data indicates heavy open interest clustered around the $74,000 to $75,000 range, suggesting that prices may stay constrained near this level until Friday’s expiry.
Virtual Bacon noted that, if the Bitcoin price moves above $75,000, it could surge toward $80,000. However, if it drops below $70,000, it may amplify the downward trend.
Two Scenarios For BitcoinHe said that this could facilitate a move toward $80,000 and set the stage for renewed bullish sentiment as the market looks for recovery toward the critical resistance levels of $94,000 to $98,000 in the second quarter of the year.
The second scenario involves a rejection at the $75,000 resistance level, leading to a post-expiry drop back into the $63,000 to $70,000 range.
Featured image from OpenArt, chart from TradingView.com
