On February 9, the American professional baseball team based in Washington, D.C., the Washington Nationals, announced the team has partnered with Terra, the open-source blockchain platform and decentralized autonomous organization (DAO). The Washington Nationals detail that the team is a “leading innovator” and is “consistently introducing new technologies to enhance the fan experience.” Washington Nationals Ink Long-Term Deal With Terra Major League Baseball (MLB) team the Washington Nationals has partnered with the blockchain platform and DAO Terra, according to an announcement published by the team on Wednesday. The deal with Terra follows a slew of sports-related deals with crypto firms, but the MLB team will be the first to partner with an open-source blockchain project. In addition to the partnership, the algorithmic stablecoin UST that’s issued on the Terra blockchain will be “accepted as a payment method at Nationals Park as early as next season.” “The Nationals continue t...
Bitcoin struggling to break above $51,600 could trigger another big drop in BTC price.
The price of Bitcoin (BTC) is continuing to range between $48,000 and $51,000, unable to break out of the $51,600 resistance level.
If Bitcoin struggles to surpass the $51,600 resistance area in the near term, technical analysts say the probability of a correction rises.
$51,600 is the key level to watch
According to Josh Olszewicz, a cryptocurrency trader and technical analyst, the $51,600 level is currently acting as a strong resistance level.
For Bitcoin to retest the all-time high at $58,000 and initiate a potential rally towards $62,000, it needs to cleanly move past $51,600, he explained.
Hence, a rally beyond $51,600 is the clear invalidation point for any short-term bearish scenario for Bitcoin.
The failure to break out in the near term could result in a bearish test of lower support areas, found at around $42,000. He said:
"If 4h breaks down, be prepared for some uber bearish calls to start popping at 36.7k meanwhile, I'll be bidding the daily Kijun at 42k. Alternatively, if $BTC breaks above 4h Cloud at 51.6k, I like ATH retest at 58k, R3 yearly pivot test at 62k, macro PF diag test at 70k, R4 yearly pivot test at 80K. Seasonality suggests we go neutral/sideways through March and then reach for those higher targets in Q2."
The $42,000 support area is a key level because it marks the top of the previous rally. On Jan. 8, the price of Bitcoin peaked at $42,085 on Binance, seeing a steep correction afterwards.
Bitcoin dropping to $42,000 to retest the previous top as a support area would not be necessarily bearish beyond the short term, however.
Whale clusters show similar levels of support
Moreover, analysts at Whalemap noted large inflows to whale wallets at $48,500 and $46,500, which they say should provide BTC with some support.
"The current situation looks similar to the one we had at 29K," they explained. What's more, the $46,532 level may now be "the new $29,000," which held as support during the previous correction in January before the rally continued. They added:
The $55,400 is an important level to keep an eye on as well. Getting back above it will be a good sign
The most compelling argument for a short-term Bitcoin drop
Bitcoin tends to seek liquidity after a prolonged consolidation, which means it can drop down to fill buy orders at lower support areas that can ultimately fuel a new rally.
A pseudonymous trader known as "Salsa Tekila" echoed this sentiment. He said that there is a big support area at $41,000, followed by resistance at $54,000. He wrote:
"My current take on $BTC mid term: 1) Support around $41K. 2) Resistance around $54K. Depending on context, I might trigger swings around those two vicinities. Likely just scalp until then, unless major events come to fruition."
Bitcoin tested the $44,800 support level in the past 72 hours, but it was not enough to propel BTC above $51,600.
This trend could cause the price of Bitcoin to drop back to the $44,800 level or to a lower support level, at $42,000.
The ideal scenario would be for Bitcoin to hold onto the $44,800 support area if it drops again, stabilize it as a macro support level, and move back up.
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