Return to the favor of the king of cryptocurrencies is finally around the corner? – What an exceptional week for the Bitcoin (BTC) exchange rate that never ceases to amaze us! On the verge of falling below $20,000 or the 2017 ATH, it rises again to $28,000, the resistance that the bulls are currently trying to overcome. This could be the first turning point in the prospect of neutralizing the crypto king’s bearish move since his last ATH in November 2021.
Many investors instinctively believe that the successive failures in the banking sector contributed to Bitcoin’s resurgence. However, the main starting point for this rebound will instead be related to USDC Circle issues. Moreover, the deprivation of the stablecoin seems to have contributed to the gradual transition to BTC.
In a rather tense market context with nasty surprises coming to the surface, let’s take a look at the latest bitcoin technical analyzes and alternative scenarios in the coming days/weeks.
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Bitcoin Weekly – Will Bulls Hold Above $26,000?
Perhaps at first glance this will seem excessive. However, it is clear that bitcoin, which was very close to hell last week, is back in power. So much so that the bulls could potentially offer themselves a hold above the $26,000 resistance. As we speak, prices are trading in the $27,000-$28,000 zone and then making a mini foray into the Kumo (Ichimoku Cloud).
This week’s bullish candle, which pretty much shows the dominance of bulls over bears, will resurrect a possible end to the BTC price status quo below Kumo. But on the other hand, Chikou Spahn will have to wait a few weeks or months to hope for a favorable outcome. And, firstly, the Ichimoku curve, which is 26 weeks behind, could attack the descending line if the crypto king rises even higher.
In the event of a favorable reversal of polarity from $26,000 (moving from resistance to support) over the next few weeks, there would be reason to consider neutralizing Bitcoin’s bearish move since its last ATH in November 2021. D On the one hand, the downward line crossing will be fully confirmed. On the other hand, prices will rise inside the Ichimoku cloud and approach $30,000.
Conversely, we should not rule out a false buy signal due to a hidden $26,000 crossover. Fearing that BTC price will get stuck in a range or horizontal channel that could be between $20,000 and $26,000.
Bitcoin in Daily Units – The Bears Wrong!
In the daily units, the bears might have a feeling that things were going well. Moreover, the market context has changed a bit. Last week, $20,000 was in serious danger. But unexpectedly, they were on the wrong foot, perhaps overlooking the implications of the USDC depeg.
Now the price of bitcoin and Chikou Span are regaining their advantageous position in relation to Kumo. And although the rebound since March 11 was extremely turbulent, the $26,000 crossing scenario remains relevant. Moreover, in the future, Kumo shows a desire to resume the uptrend, provided that Senkou Span A (SSA) and Senkou Span B (SSB) deviate significantly to provide a signal that can withstand bearish pressure.
In the interest of the bulls, a slight consolidation or lateralization at $26,000 would be beneficial to increase the chances of maintaining a great bounce from March 11. With the goal for the king of crypto to skyrocket to $30,000 soon. On the other hand, a dip below $26,000 once again would signify the bulls’ inability to erase the harsh memories of the spring 2022 corrective wave.
To sum it up, let’s not be too quick to rejoice at Bitcoin’s strong weekly results. That being said, bulls will feel comforting to see prices firmly resting on two supports, $16,000 and $20,000 YtD. Not to mention that price entry inside the Kumo in weekly units would open the door to neutralize the bearish move.
The fact that the likelihood of a Fed rate cut has risen at a high rate due to uncertainty about the US banking sector may have momentarily contributed to the return of the crypto king to grace. However, a good week does not definitively reveal a trend.
Investors will have to wait until the next Fed meeting on Wednesday, March 22, to draw conclusions. And only after this macroeconomic event will we be able to test the possible decorrelation of Bitcoin from the main classes of risky assets. In this case, Satoshi Nakomoto’s digital currency could change status, potentially becoming a true monetary derivative of gold. But if the Fed turns out to be inflexible, as was the case with the ECB the day before yesterday, we are not immune from a negative reaction.
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