Cryptocurrency investors were staring down a bear market during the final weekend of trading in February. On Friday 26, the world's most valuable digital assets was still having a hard time trying to climb back to the incredible bull run that started in the middle of the coronavirus pandemic and culminated earlier this month with a record high exchange rate close to $57,000,

Most digital currency traders were expecting a pullback; after all, this has been the usual behavior of investors who see Bitcoin reaching a nadir, but there was a general sense that profit takers would only bring BTC/USD down to $50K. At this point, however, it appears Bitcoin has lost its grip and will not be able to regain its highly psychological $50K pricing level. In fact, bearish market analysts doubt that BTC will be able to sustain $45K pricing for very long.

What does that mean for the cryptocurrency market? Here are some immediate thoughts on what this means for the Bitcoin trading ecosystem:

While it's now clear that the pullback to $50K is real, traders can still profit. Traders who rely on technical analysis have been very busy evaluating patterns and trying to determine what moves other traders will be making over the next weeks. There are indicators hinting at the possibility of another rally materializing over the spring. In the meantime, periods of high volatility should definitely be expected.

As for the rest of competing and alternative tokens on the market, traders will have to roll with the punches. The double-digit losses seen this week will likely remain for a while, but they could be surmounted once Bitcoin goes on a bullish streak again.

Traders have three fundamental analysis factors to keep their eyes on:

  • Bitcoin futures at the Chicago Mercantile Exchange are tilting towards a push back towards $50K and even $52K, but the support line will likely build closer to $49K for the time being.

  • The Bitcoin ETF currently trading at the Toronto Stock Exchange is getting very active, and it will likely reach $1 billion in value over the next few months.

  • Cryptocurrency ETF applications filed with the United States Securities and Exchange Commission will be reviewed once again under new leadership.