Long-term timeframes for Bitcoin (BTC) are showing a number of bullish signals, but the direction of the shorter-term trend is still unclear
Recent data from the US Federal Reserve showed that between March 8 and 15, the rate of bank deposits in the US fell significantly amid concerns about the threat of a banking crisis.. This has prompted many investors to look to alternative ways to save their money.. At times like these, Bitcoin (BTC) traditionally wins, along with other cryptocurrencies.
However, on the other hand, a significant price increase always becomes a double-edged sword.. This was confirmed by the latest data from Glassnode analysts.. They showed that the net inflow of BTC to exchanges increased to a 10-month high for the sale of coins in order to fix profits.
BTC Targets Bullish Range Breakout
The results of the technical analysis of the daily chart show that since March 10, the bitcoin rate has been actively strengthening. In 14 days, it has risen in price by almost 50% and updated this year’s high, reaching $29,380.. However, after that, BTC pulled back again, forming a bearish candle (red icon).
However, the daily RSI continues to give bullish signals. It has broken through the bearish divergence trendline (black) and is now holding above the 50 mark.
The current trading range for BTC is $24,400 – $31,800. The bullish RSI suggests that the most likely scenario is the price rise to the upper limit of this range.
The shorter 6-hour time frame shows that Bitcoin bounced off an ascending support line and then broke through a short-term descending resistance line.. The continuation of this growth will confirm the market’s focus on $31,800.
A very important support level is located at $24,450 (Fibo level 0.5 retracement), since the area of horizontal support we identified earlier also passes here.. This springboard can cause a price rebound in the event of a fall.
Despite some conflicting signals on the daily and 6-hour charts, the weekly time frame outlines a bullish outlook for BTC.
First, the price broke through the line of long-term downward resistance, built from the historical high. Further, the growth rate accelerated after the market turned this level into support at the end of the week of March 6-13 (green icon). Bitcoin then broke through the $24,700 horizontal resistance area and reached its highest level since June 2022.. This area should now become support for the coin.
In addition to the price dynamics, the RSI index is also set very strongly.. The indicator has broken through the descending resistance line (black) after bullish divergence signals (green). Then he rose above 50. All of these are bullish signals.
If the growth continues, the next resistance will come into play at $35,680 (Fibo level 0.382 correction). If BTC closes below $24,700, this will cancel the bullish forecast and could trigger a fall towards $18,600.
Thus, the most likely scenario for bitcoin is an increase towards the long-term resistance area at $35,680. This forecast will be neutralized only if the week closes below $24,700, which may cause the price to fall to $18,600.