The final week of March saw Bitcoin debut within close proximity of previous all-time highs.
As the market consolidates higher, BTC price action is showing new life. Will bulls be able to resume price discovery?
For the monthly close, that is the optimal scenario that is available. The hard-earned resurgence of Bitcoin stands in stark contrast to last week’s depressing atmosphere marked by sharp losses.
At one point, the decline from the current all-time highs at $74,000 exceeded17%, which, although still small by the standards of a bull market correction, alarmed a lot of people.
The scene has changed this week, at least thus far. Investor expectations of a new assault on the highs is rising, not decreasing, as a CME gap to the upside has turned into one to the downside.
When you combine it with a rise in the difficulty of inbound mining, you get typical bullish indications.
Apart from Bitcoin, there exists a traditional group of macroeconomic catalysts that could potentially introduce further volatility into high-risk assets.
Each week, Cointelegraph provides a weekly summary of the factors that are likely to influence the price of bitcoin in the near future.
Bitcoin Price Goes Back to its Crunch Resistance Area
For the most part, the weekend was successful for supporters of bitcoin, in stark contrast to earlier.
The weekly closing on Bitstamp was just under $67,200 after a gradual climb higher, as confirmed by statistics from TradingView and Cointelegraph Markets Pro.
Although this is $1,200 less than it was the previous week, the majority of the recent losses—which saw BTC/USD hit local lows of less than $61,000 on March 20—have been erased.
Popular analyst Mark Cullen now has a gap to the downside on the CME futures markets as his aim to watch.
Gaps, whether upward or downward, create a common price lure when they occur over the weekend; when the new trading week starts, BTC/USD “fills” these gaps in a matter of days or even hours.
Cullen posted a chart displaying what he called “areas of interest” along with the words, “Let’s see if that CME gap gets filled in the next 24hrs.”
However, a look at market participants’ opinions before Wall Street opened shows serious doubts about the durability of the Bitcoin bull market.
JT, a trader friend, described several oscillators, such as the Relative Strength Index (RSI), that all indicated a trend reversal and showed “overbought” indications on two-week timeframes.
A recent X analysis states, in part, “Bottom line: Bitcoin is overbought on the 2-week oscillators and would need a close over $69.1K for bulls to regain momentum.”
