Investors are advised to very closely. A break below it on a sustained basis may initiate a sell-off towards USD$71,000. A respectful defense of the level could lead towards a bounce back to resistance near USD$90,000.
In view of current volatility, dollar-cost averaging is advisable instead of any lump-sum investments. Breaking purchases down into units over the course of April on a weekly basis would diminish the risk of market entry timing. This way, investors might end up taking advantage of the historical upward trend of the month.
Keep an eye on Federal Reserve announcements with regard to interest rates. According to market analysts, should the Fed acknowledge a more accommodative stance, this would present a price spike of Bitcoin hitting levels around USD$130,000. On the contrary, hawkish comments from the Fed may bear down additional selling pressure.
Evaluate portfolio allocation based on risk tolerance. The current market presents both opportunity and risk. Investors who want to capitalize on volatility should hold or build their positions. Those who would like to reduce their exposure may wait until clearer trends emerge.