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Bitcoin Price Prediction: BTC Retraces After Testing $28,000 Psychological Level

10 Min Read
Last Updated March 22nd 2021

Daily Bitcoin BTC Price Forecast

  • Bitcoin has retraced down to $27,000.
  • The 10-day SMA is a strong support barrier for BTC.

Bitcoin crossed the $28,000 level and reached a new all-time high level of $28,288.84 this Sunday. However, the price has retraced since then and has reached $27,000. Let’s checkout the 1-day and 4-hour charts to get a better perspective.

 

Bitcoin Retraces From $28,000-Level

The premier cryptocurrency has been sitting pretty on the 10-day SMA and has used this level to bounce up and reach new heights. The bulls have started Monday strong, and it looks like they are going to launch an assault for the $28,000 price level again, having regained the $27,000 psychological zone.

Image: BTC/USD daily chart

However, one must note that the relative strength index (RSI) has wandered into the overbought territory. This shows that the asset is presently overvalued and may face another retracement soon. Let’s look at the 4-hour chart to get a better idea of the price action.

Image: BTC/USD 4-hour chart

After facing rejection at the $27,600 resistance level, the price has had three consecutive red candles and dropped below the 10-bar SMA. The buyers have managed to regain control and flip the 10-bar SMA from resistance to support. The MACD shows sustained bullish momentum.

 

Mexico’s Second Richest Man: Bitcoin Is “Best Investment Ever”

Ricardo Salinas Pliego, chairman at conglomerate Grupo Salinas, recently said that he purchased his first Bitcoin in 2013. Pliego, Mexico’s second richest man, told Cointelegraph that the BTC purchase was his “best investment ever.”

After holding it all the way until its 2017 highs, he sold all his positions at $17,000 and purchased it again later at a cheaper price. Salinas currently holds around 10% of his liquid portfolio in BTC and doesn't plan to sell any of it any time soon. 

I want to sit around for another five or ten years. 

Salinas noted that he was initially attracted by Bitcoin as a means of exchange. However, he is now convinced that Bitcoin’s potential remains in its store of value features. According to him, Bitcoin’s properties are particularly attractive in Latin American economies where fiat currency is being debased and inflation is rampant. 

What's happening in Venezuela, in Argentina where fiat money is collapsing has become a scandal (...) It really opens your eyes to the problem of fiat cash. 

In the billionaire’s opinion, Bitcoin is the natural result of money evolution, from physical to digital. 

Bitcoin is bits and bytes in the ether, but the good thing is that it cannot be debased and it cannot be confiscated that easily.

 

Bitcoin's Market Cap Is Now More Than Visa's

Following Bitcoin’s Christmas price boom, the coin has surpassed MasterCard and Visa to become the 11th largest asset by market capitalization, as per Asset Dash. Currently, the asset’s market cap is $461.9 billion, two billion dollars higher than that of Visa shares, which is $459.9 billion. The market cap of Mastercard is $332 billion. 

To take over the next largest asset by market cap, Class B shares in Berkshire Hathaway, Bitcoin needs to add an extra $70 billion to its market cap. Berkshire Hathaway has a market cap of $531.4 billion. 

To flip Berkshire Hathaway, Bitcoin would have to reach a price of $28,602. This might presumably irritate Berkshire Hathaway CEO Warren Buffett, who has previously dismissed Bitcoin as “rat poison squared.” If Bitcoin manages to top Berkshire Hathaway, it will become the tenth largest asset by market cap.

 

Grayscale Bought A Little Over 12,000 BTC In 24 hours

Grayscale Bitcoin Trust recently added 12,319 Bitcoin in 24 hours, pushing the total cryptocurrency assets under management (AUM) above $15 billion. As per Bybt.com, Grayscale now has nearly 589,000 Bitcoin along with 2.94 million Ethereum. 

The recent accumulation comes after Grayscale halted accepting new investors in its six funds. The company attracted a lot of attention recently because of its DropGold advertising campaign. It also reported a scaling interest in Ethereum earlier in December. 

Bitcoin’s recent price surge has increased the value of Grayscale’s BTC assets under management. The company’s Bitcoin assets' total value now stands at around $14 billion, along with nearly $1.8 billion of Ethereum assets. 

 

Bitcoin Key Price Levels To Watch For BTC

Looking at the 1-day chart, we can see that if the premier cryptocurrency faces another rejection, it will likely test the 10-day SMA at $24,500. As mentioned before, this level has been a strong one for BTC. The bulls will hope for it to remain strong as they aim for the $27,600 resistance.

However, a break below the 10-day SMA could be catastrophic as the next healthy support wall lies all the way down at the 50-day SMA ($19,600).

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