The price of Bitcoin (BTC) has failed to break above the psychological $fifty,000 resistance going into the weekend and has dropped below the $48,000 level on March 6.

BTC/USD 1-hour candle nautical chart (Bitstamp). Source: Tradingview

At present traders are watching whether BTC/USD can pause above the $50,000 level to resume the bull cycle. Conversely, a drop below the recent lows below $46,000 will probable open the door to new lower lows, which may so pose a threat to the bull run that has been in place for almost a yr, at to the lowest degree in the short to medium term.

Pseudonymous trader Rekt Upper-case letter pointed out similar toll levels to watch. If BTC fails to hold the electric current levels above $46,000, the trader expects Bitcoin to lesser somewhere in the area betwixt $38,000 and $45,000 despite Bitcoin posting higher lows in contempo days.

"BTC higher lows hold until they don't," he wrote. "Each subsequent reaction from the Jan HL was lesser and lesser. Could be the aforementioned now. Better to be safe than sorry by preparing for a potential breakdown from this HL."

One major gene that's likely causing the current downward pressure on price is an uptick in whales' activity. Data from CryptoQuant shows an increment in large transactions to exchanges on March 6, though miners' activity remains relatively low.

Equally shown in the chart beneath, previous upticks in whales moving funds to exchange coincided with drops in Bitcoin price on March iii-4.

Whales (blue) vs. Miners (orange) vs. BTC price (red). Source: CryptoQuant

Macroeconomic headwinds for Bitcoin

As Cointelegraph reported, Bitcoin is also facing downward pressure level from macroeconomic headwinds. A sharp spike in 10-yr U.S. Treasury yields and a pullback in tech stocks, in particular, are weighing on cryptocurrency prices as investors flee adventure-on avails.

Meanwhile, the Dollar currency index, or DXY, has broken through technical resistance, striking the highest levels since November 2020.

BTC (blueish) vs. DXY (orange). Source: Tradingview

Cointelegraph Markets analyst Michael van de Poppe points out that Bitcoin'south downtrend remains intact after the latest attempt to intermission $l,000 failed.

"This means that the trend is still down and overall weakness on the markets in the curt term," he explained. "$l,000 is so far a no-go for Bitcoin."

Withal, Bitcoin, likewise as gold, may see some respite soon every bit the DXY and Treasury yields are nearing their own technical resistance levels.

"I believe that the yields are getting topped out relatively soon including the DXY," explained van de Poppe. "Both are in resistance areas, which means that we should exist close to a acme formation on these 2, but besides on a bottom formation for Bitcoin and gold relatively shortly."

He added:

March is often a bad month for markets and history repeats itself. So macro-wise, we're still bullish on the wheel and heating upwards for continuation, despite the recent involvement in yields."