Bitcoin is moving in a range for the past two weeks. Last week, Bitcoin tried breaking its most recent resistance. But there was huge selling pressure due to which price again entered the previous range. The current scenario might be a bit confusing for some investors. But the following Bitcoin Weekly news may give an idea about how Bitcoin may perform over the coming days.
Bitcoin March Monthly Closing Supports Bullish Sentiment
Bitcoin’s price was trading around $23,500 at the beginning of the month. But the monthly close was at around $28,500 which shows that buyers are trying to push the price higher. The structure of March’s technical candle is pretty much similar to January’s candle. So, the traders are confident that the price will increase over the next weeks.
The Birb Nest, a renowned crypto analyst, shared this update on his Twitter profile saying that the price may consolidate for a few days before breaking higher. He highlighted the $26,500 as the most recent support level. But he also mentioned $25,300 as the next support if the price broke below $26,500.
Moreover, he highlighted the $29,000-$29,500 level as the resistance. He added that Bitcoin will show a strong momentum on a smaller time frame once it broke out of any of the above-mentioned levels.
April has been Historically Good for Risk Assets
This chart shows the 10 years’ performance of Bitcoin and S&P. The data shows that S&P performed very well 8 out of 10 times during April. Similarly, Bitcoin performed well 6 out of 10 times during April. The data shows that the crypto market is mostly influenced by U.S. stocks.
And the recent bull rally in the U.S. stocks may indicate an upcoming bull run in the crypto market. It’s also worth noting that Bitcoin’s price increased by 22% during March. So, it may also help with building a strong bullish momentum during April.
Bitcoin Weekly Update by Rekt
Rekt, a pseudonymous crypto analyst, has shared his views through a monthly chart. The chart shows that Bitcoin has broken out of the resistance that kept it bearish since November 2021. The analyst has highlighted the same patterns from 2014 and 2018. He mentioned that March’s bullish closing is indicating the beginning of a new macro uptrend.
The historic data also support this statement because Bitcoin begins a macro uptrend whenever it breaks out of a strong downtrend. The analyst also mentioned that the first quarter of 2023 has shown tremendous growth by completely engulfing the Q4 2022 candle.
Bitcoin Analysts are Expecting a Target of $35,000
Bitcoin Analysts have identified a cup and handle pattern on Bitcoin’s daily chart. The analysts have set a target of $32,000 to $35,000. The activity of investors has also increased recently. The analysts think that Bitcoin will touch the support of January 2022 i.e $32,000 during this bull run.
And if the price managed to surpass this level, Bitcoin will eventually head toward $35,000. Although cup and handle isn’t a classical chart pattern, the analysts have combined a few other factors to set these targets. According to recent Bitcoin on-chain data, the whales are distributing their assets and the number of retail investors is swiftly increasing.
Analysts think that retail investors may play a vital role in pushing the price higher. The supply of Bitcoin is decreasing on several exchanges. Similarly, Whale transactions have also reduced. These two elements indicate that Bitcoin is getting ready for the next pump.
Bitcoin’s Price may Drop in the Short Term
Although most analysts are posting bullish sentiment about Bitcoin, investors must keep this scenario in their mind. Bitcoin is currently trading close to its weekly resistance. And the asset is also forming a rising wedge pattern on the 4Hr chart. The rising wedge pattern is considered the reversal pattern in technical terms.
Bitcoin’s price may drop below if this pattern is completed. And the price will eventually test the are highlighted by the Birb Nest i.e. $26,500. Therefore, investors must consider all the possibilities before making an investment.
Bitcoin is a highly volatile risk asset that has affected many investors during its recent downtrend. However, 2023 has given hope to most investors with a bullish quarterly closing. Most analysts are now expecting a jump toward the $32,000-$35,000 range. But the analysts have also warned about a price drop in the short term.
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