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Highlights
- The Bitcoin Fear and Greed Index at 79% indicates the buyers are aggressive in accumulating this asset.
- The coin price witnessed a sharp rally from $50600 to $69300 within two weeks, registering 36% growth.
- The intraday trading volume in BTC is $32.5 Billion, indicating a 20% loss.
The leading cryptocurrency Bitcoin showcased a surge in volatility this week, witnessing supply pressure at $69000-70000 resistance. The daily chart projects two reversals from the overhead barrier indicating the sellers are actively defending the $70K psychological level. With an intraday gain of 1.34%, the Bitcoin price projects another breakout opportunity for buyers which may pave the way for a prolonged recovery trend.
Also Read: BlackRock’s Bitcoin Holding Surpasses MicroStrategy Amid $2 Bln Net Inflows This Week
Is the $70,000 Threshold Set to Break?
Analyzing the Bitcoin price movements on the daily chart reveals the emergence of a bullish pattern that technicians refer to as a “rounding bottom.” This pattern signifies a gradual shift from a bearish to a bullish trend, characterized by a steady and rounded rise in price that resembles the shape of a “U”.
Currently trading at $69371, the coin price teases a bullish breakout from the pattern’s neckline resistance at the $69000-$70000 range. A successful breakout above this barrier will give a better signal for Bitcoin price sustainability for new heights.
If the pattern holds true, the buyers should lead this asset to a theoretical target of $124000.
However, if the overhead supply at $70000 triggers a new correction, the coin holders may find suitable support at $63240, followed by $57500 to regain the exhausted bullish momentum. A potential pullback will still keep the bullish outlook intact as the price may develop into a cup-and-handle pattern.
Also Read: BlackRock’s Bitcoin Stash Reaches $12.3B as BTC Hits New ATH
Bitcoin’s Shrinking Exchange Supply Signals Bullish Market Sentiment
A tweet from crypto trader Ivan Tokenomija, shared by the crypto analytics firm Santiment, highlights a significant trend in the Bitcoin market. The chart indicates a declining balance of Bitcoin on exchanges, which traditionally suggests a reduced selling pressure. A lower exchange supply often leads to the inference that investors are moving BTC to private wallets, typically for long-term holding.
Everyday less and less #BTC on exchanges!!! Supply is crashing, Bitcoin price will skyrocket!!! #santiment pic.twitter.com/nDf60KxI04
— Ivan Tokenomija (@tokenomija) March 9, 2024
This “holding” behavior is usually perceived as a bullish sign, implying a potential price increase due to the basic economic principle of scarcity – when supply is reduced, and demand stays constant or increases, the price tends to go up.
Technical Indicator
- Pivot Levels: As Bitcoin price enters price discovery mode, the buyers may witness overhead supply at $77635 and $91400 which are aligned with the R2 and R3 of traditional pivot levels.
- Average Directional Index: The ADX slope at 50% reflects an overextended rally which may need a minor pullback to regain bullish strength.
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