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As Bitcoin (BTC) attempts to reclaim the $90,000 mark, some market watchers have warned investors about Fridays potential market volatility. Various analysts suggest that the flagships crypto performance could go either direction depending on the White House crypto summits outcome.
Over the past two days, the crypto market has recovered from this weeks lows ahead of the US crypto summit. Last Friday, news that US President Donald Trump would host the first-ever White House crypto summit filled investors and industry participants with bullish expectations.
Scheduled for March 7, several high-profile figures will attend the event, including Strategys Michael Saylor, Coinbase CEO Brian Armstrong, and Robinhood CEO Vladimir Tenev.
Since Tuesday, Bitcoins price has surged around 9% from the $81,500 support to surpass the $90,000 barrier, but some market watchers have warned investors about the expected volatility for Fridays crypto summit.
Analyst Altcoin Sherpa noted that Bitcoin doesnt have much clarity on higher timeframes despite retesting its post-November breakout range and holding the 200-day Exponential Moving Average (EMA).
Sherpa suggested holding the $89,000 support is key for BTCs price as the crypto summits volatility leaves all options on the table. He added that the crypto market will likely whipsaw in both directions this Friday.
Meanwhile, trader Daan Crypto Trades pointed out that Bitcoins current levels are worth watching over the next few days, as it is still struggling to hold on to the range, but bears have also failed a further breakdown after the initial rejection.
Nonetheless, he considers that the crypto summit is a very promising sign for the next 4 years, regardless of the outcome:
It’s something we couldn’t have dreamt of the past few years. With the industry being attacked on a regular basis. Let’s hope the focus will be on the right things and that the administration is choosing the right way to do things.
Analyst Crypto Jelle affirmed that things are developing well, but it all hinges on the crypto event on Friday. He noted that an underwhelming event could trigger another sell-off, as there arent other potential bullish catalysts on the horizon.
Jelle also advised investors Don’t get too excited until we get some more clarity. However, he highlighted a Potential Power of 3 (PO3) forming on BTCs chart, targeting $140,000 once range lows are successfully reclaimed.
This pattern divides the price cycle into three distinctive phases. In the first phase, accumulation, the price consolidates near the recent high following strong price action.
The second phase, manipulation, consists of a tokens price falling below the previous phases support level and trading within a range below this zone. The third phase, distributions, sees a strong price breakout, building momentum and driving participants to enter the market.
According to the post, Bitcoin is pushing for the reclaim of the post-November breakouts lower range. Holding through the $90,000-$92,000 zone would trigger the power of three set up third phase, which would see BTCs price expand to new highs.
After todays rejection from the $90,000 range, the analyst signaled that Bitcoin could form a higher low around $87,500 before retesting the range lows again.
At the time of writing, BTC trades at $88,372, a 1.3% drop in the daily timeframe.