Bitcoin has gained 7,000 points in market value over the past ten days.
The top crypto asset has now entered a significant resistance zone.
A decisive close above $45,500 could catapult Bitcoin to $51,000.
Share this article
Bitcoin has reached a crucial resistance area after surging by nearly 19% over the past 10 days. However, it remains to be seen whether the top cryptocurrency will have the strength to slice through it to resume its uptrend.
Bitcoin Tests Resistance Again
Bitcoin is once again threatening to break out.
The leading cryptocurrency continues to trend up, gaining over 7,000 points in market value in the past 10 days. It’s broken above $45,000 for the first time since Feb. 10, trading at $45,013 at press time. Increased buying pressure from the likes of the Luna Foundation Guard, which is currently accumulating Bitcoin in order to increase Terra’s UST reserves, and renewed confidence among market participants have helped Bitcoin flourish this week.
Several on-chain metrics have hinted that a trend reversal could soon play out. However, Bitcoin must first break through the $45,500 resistance zone to be able to advance further.
The top crypto’s trading history shows that this hurdle has been challenging to break. Every time Bitcoin has tested the $45,500 resistance area since the beginning of the year, it has failed to break it and posted a significant retrace. For instance, when it was rejected from the key level in mid-January, mid-February, and early March, it shed losses of over 18%.
While Bitcoin is attempting to overcome resistance again, traders appear skeptical.
Transaction data from Binance Futures shows that the BTCUSDT Long/Short Ratio has declined to a 0.76 ratio as of Mar. 25. Such market behavior indicates that roughly 57% of all trading accounts on the platform are net-short on Bitcoin.
The high levels of pessimism surrounding Bitcoin’s future price performance may act as a warning signal that a short squeeze is underway.
A spike in upward pressure that pushes Bitcoin beyond the $45,500 resistance zone could trigger a cascade of liquidation in the futures market, catapulting prices higher. The Fibonacci retracement indicator, measured from the November all-time high at nearly $70,000 to the late January low at $33,000, suggests that Bitcoin could target $51,000 if it successfully overcomes resistance. However, failing to breach such a crucial supply wall could result in a pullback to $40,700.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
NFT Express: Your on-ramp to the world of NFTs
At Tatum, we’ve already made it super easy to create your own NFTs on multiple blockchains without having to learn Solidity or create your own smart contracts. Anyone can deploy…
Terra’s Bitcoin Spree Could Help LUNA Moon
The Luna Foundation Guard (LFG) recently announced plans to accumulate billions of dollars worth of Bitcoin to stabilize UST. Terra’s LUNA now looks primed for new highs, but it must…
Bitcoin’s Network Activity Is Soaring. What Comes Next?
Several on-chain metrics suggest that Bitcoin is gaining strength for a significant bullish impulse. Still, the top crypto has a big hurdle to overcome first. Bitcoin On-Chain Metrics Pick Up…
Crypto Market Returns to $2 Trillion as Bitcoin Rallies
Bitcoin topped $43,000 early Tuesday while Ethereum crossed $3,000—bringing the total crypto market cap back above $2 trillion. Crypto Market Back Above $2T The crypto market is showing signs of…