Bitcoin: Dip-Buying Levels to Watch as Crypto Consolidates Below Key $65K Support

investing.com:

Amid the volatility in crypto markets, Bitcoin spent the week testing key support levels and reacting to macroeconomic data.

This came after high US inflation in February triggered a sell-off in assets like cryptocurrencies, adding to Bitcoin's correction from the previous week.

Despite facing resistance at $68,000, Bitcoin's technical outlook remains bullish, with critical support levels around $65,000 signaling the potential for further upside.

After starting a correction last week, Bitcoin spent this week testing crucial support levels.

Although the crypto market dynamics remain unchanged, Bitcoin has continued to react to macroeconomic data since last week.

The high US inflation in February, following January's trend, made investors uneasy, leading to a sell-off in risky assets like cryptocurrencies.

Despite losing $68,000 the previous week and experiencing profit-taking, Bitcoin managed to stay above the ascending trend line established in 2024, which acted as the primary support.

As the sell-off intensified on Tuesday, Bitcoin retraced toward the trendline, which was tested and confirmed twice as a support in the first quarter of the year. This prompted buying near these levels.

The mid-week uptick was largely driven by the Fed's stance on high inflation, which had kept the market on edge. While it was widely expected that the Fed would maintain interest rates, there was speculation about potential rate cuts later in the year.

Fortunately, the Fed's dovish statements eased concerns, prompting Bitcoin to bounce back and hold onto its upward trend line. However, the rally faced resistance at $68,000, leading to a pullback to around $65,000.

Despite some volatility mid-week, $65,000 has proven to be a crucial support