The price of bitcoin (BTC) experienced a further rally to approach $45,000 overnight on March 27while the weekend gave the impression that it was going to have a decisively bullish close.
All-important weekly closing
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was back at higher levels like days before after a rejection just above the $45,000 mark.
While it remains within its extended trading range with $46,000 as the top or ceiling, the pair was still firmly on the radar of long-term traders as the weekly close approached, which had the potential to be the highest for bitcoin price so far this year.
Popular trader and analyst Rekt Capital added that bitcoin’s 21-week exponential moving average (EMA) was also in line for a reversal as resistance, something that had served the bulls well in 2021.
#BTC is positioning itself well for a breakout Weekly Close beyond a key Bull Market EMA (21-week EMA)$BTC #crypto #bitcoin pic.twitter.com/HmmfCkOxiP
— Rekt Capital (@rektcapital) March 26, 2022
BTC price is positioning well for a weekly breakout close beyond a key bull market EMA (21-week EMA)
Among them was fellow Crypto analyst Ed, who warned that buying at long-term resistance near the $46,000 annual open made little sense in terms of risk/reward.
Try to convince me, spot buying into resistance right here is a bad idea.
You won’t succeed with this kind of R:R.You might get an entry a bit lower but you might miss also a brutal break out and never get your retest.
Max risk is 1R
Reward is 4.9R pic.twitter.com/E7wo0MC0pB— Ed_NL (@Crypto_Ed_NL) March 26, 2022
Try to convince me that buying the resistance right here is a bad idea.
You will not succeed with this type of R:R.You might get a slightly lower entry, but you might as well miss a brutal breakout and never get your retest.
The maximum risk is 1R
The reward is 4.9R
As Cointelegraph reported, others had already argued that a more significant trend break in bitcoin price was needed for them to turn bullish overall and go long.
Spot demand reassures market watchers
Meanwhile, on-chain research revealed that it was spot markets, not derivatives, that led the way last week.
Glassnode co-founders Yann Allemann and Jan Happel argued on Twitter this weekend that this was bullish in and of itself, as historically, the sustained rise had been driven by spot demand.
Looks like the move to $44k was led by spot demand. every sustained #BTC bullish move is led by the spot market. pic.twitter.com/b72KYwZVLr
— (@Negentropic_) March 26, 2022
It appears that the move to $44,000 was driven by demand for spot. Every sustained bullish movement of BTC is led by the spot market.
However, derivatives themselves provided little cause for concernas funding rates remained neutral to negative despite the move towards the top of the bitcoin price trading range.
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