Bitcoin price action seems willing to consolidate recent gains, with the yearly open still viewed as the crucial level to maintain.

Bitcoin (BTC) hinted at a welcomed retracement overnight into March 30 after relentless upside failed to flip $48,000 to support.

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

Trader: BTC still on target to crack $50,000

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to $46,572 on Bitstamp as Wednesday began — its lowest since March 27.

A subsequent rebound alleviated some of the losses, and at the time of writing, the pair traded at around $47,400.

The change of tack followed a cooling of the narratives, which had surrounded Bitcoin’s initial push beyond its yearly open price of $46,200 — a significant achievement that ended the cryptocurrency’s multi-month trading range.

Blockchain protocol Terra, on its way to amassing an initial $3 billion in BTC for its new stablecoin, was now on an unofficial break from purchases, data from its target wallet appeared to show.

BTC last arrived on March 28, but since then, the wallet’s 27,784 BTC ($1.32 billion) balance has remained unchanged.

Do Kwon, the Terra co-founder who had initially made the buy-in public, had not made any comments about a potential change in strategy at the time of writing.

For popular trader Pentoshi, there was nonetheless still room for further gains above $50,000 in Bitcoin’s next impulse move, whenever it might come.

As Cointelegraph reported, the yearly open was of key importance for many as new support. Losing this at such an early stage, they warned, would mean that the trading range had not been genuinely broken.

Risk asset drawdown remains in focus

Another more sobering take on current BTC price action focused on Bitcoin trading habits.

Related: Bitcoin ‘could easily see $30K’ with stocks due to 30% drawdown in 2022 — Analyst

As previously noted by Filbfilb, co-founder of trading suite DecenTrader, Bitcoin is being treated less like gold and more like a tech stock under current conditions, adding to an existing stocks correlation that must be broken to avoid price repercussions.

The discussion continued on social media this week, as popular Twitter account 4adybug laid out misgivings based on Bitcoin’s performance this year.

Hodlers, they argued, had been disappointed by Bitcoin’s failure to act as an inflation hedge. 

“Bitcoin does not have the characteristics of gold to withstand rate hikes and tightening cycles or black swan events,” one post read.

Existing concerns over how United States monetary policy changes would impact performance were also heeded, these extending beyond Bitcoin to risk assets more broadly.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.

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