Bitcoin (BTC) hovered near the top of its recent trading range on March 20 as the weekly close looked poised to break a multi-week high.
Weekly close could mark a maximum of 4 weeks
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair hovering above $41,000 on Sunday.
Friday’s rally was broadly held, and on Saturday $42,400 was reached again on Bitstamp, equaling the high of early March.
Now, the weekly chart seemed poised to deliver Bitcoin’s best weekly close since early February.
“This could change at any time, but frankly the Bitcoin price chart looks better now than it has in a long time,” summarized the analyst lyn alden at the end of last week.
Previous shots had warned of a real change occurring in BTC price action, cwith popular trader Pentoshi warning that a potential rally would likely not last and would ultimately become the harbinger of new lows.
For his part, the Twitter analyst Credible Crypto presented two likely paths for the BTC/USD pair based on the daily demand holding the market at a specific price.
One of the options involved a breakout of $42,500, followed by $45,000, while its bearish counterpart offered a lower target between $29,000 and $32,000.
An update to this idea- daily demand held and if we are seeing Option 1 play out- the triangle structure may now actually already be complete. If this is the case, it will become VERY clear in the next couple days. Starting with a break of 42.5k and 45k shortly after. $BTC https://t.co/iSDcDUhpaY pic.twitter.com/RUqs0tzsMI
—Credible Crypto (@CredibleCrypto) March 20, 2022
However, on the longer time frames, the confidence was palpable.
“As long as price continues to close above $34,000 on the 3-week time frame, this hidden bullish divergence is likely to manifest and send us to a new all-time high,” added Credible Crypto in another update on Sunday.
Stocks post a last-minute rally
The markets are preparing for a new macroeconomic week, and they are stronger despite the headwinds facing Europe and the United States in particular.
Despite the ongoing war between Russia and Ukraine, European stocks rallied on Friday, something that market commentator Holger Zschaepitz described as “total madness”.
“European stocks have fully recovered from the shock of the Russian invasion of Ukraine,” he pointed.
“The Stoxx 600 fell 10.6% from before the Feb 24 invasion to the March 7 low. It is now back to square one, following the biggest weekly rally since November 2020.”
If the surprising optimism endures, Bitcoin could benefit as its correlation with stock market performance persists.
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