The overnight retreat is not being treated as a break in Bitcoin’s uptrend which began a week ago.
Bitcoin (BTC) corrected from highs above $45,000 on March 3 as traders’ optimism over continued upside remained in the driving seat.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
“Liquidity taken” at $43,000
The reset was expected, punctuating a multi-day uptrend which had seen the pair add $10,000 in a single week.
“Short term correction happened on Bitcoin after taking the liquidity again,” Cointelegraph contributor Michaël van de Poppe summarized in a Twitter update.
“Looks to me like we’re going to see another run to the highs, as the correction is not as swift as we normally would be.”
Eyes were on the yearly opening price at just above $46,000, alongside order book resistance at $48,000.
Meanwhile, accumulation continued, with smaller investors coming into focus as keen buyers at current levels.
“The small fish are stacking sats like there is no tomorrow,” analytics resource Ecoinometrics commented alongside a chart showing buying habits this week.
Bitcoin investor accumulation chart. Source: Ecoinometrics/ Twitter
Altcoins retain higher volatility
Despite the overall bullish performance this week, none of the top ten cryptocurrencies by market cap were all in the red on daily timeframes at the time of writing.
Ether (ETH), the largest altcoin by market cap, shed 3.5% to return under the $3,000 mark, something which had yet to established itself as meaningful support.
“The markets are relatively calm. People have low interest in crypto right now. Engagement is low on social media on all accounts,” Van de Poppe continued.
“Ethereum gas fees are on an ultra-low level. Those are the times that you actually should start paying attention, as it gives opportunities.”ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView