Bitcoin On Track To See 2022 Highest Weekly Close

Bitcoin (BTC) saw a new spike to nearly $45,000 overnight on March 27 as the weekend set to hit a decisive bullish close.

BTC/USD 1-hour candlestick chart (bit stamp). Source: TradingView

Weekly close is critical

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD bounced back to higher levels seen days earlier after declining just above $45,000.

While still within its extended trading range with $46,000 capped, the pair was still firmly on the radar of long-term traders as the weekly close approached, which was likely the year’s highest for Bitcoin so far.

BTC/USD 1-week candlestick chart (bit stamp). Source: TradingView

Popular trader and analyst Rekt Capital added that Bitcoin’s 21-week exponential moving average (EMA) was also lining up for a reversal as resistance — something that would have served bulls well in 2021.

However, some were not convinced of the strength of the current levels. Among them was fellow trader and analyst Crypto Ed, who warned that buying long-term resistance, close to the $46,000 it opens annually, made little sense in terms of risk/reward ratio.

As Cointelegraph reported, others had argued that Bitcoin needed a bigger trend break to turn generally bullish and take long positions.

Spot demand calms market observers

Meanwhile, on-chain research revealed it was the spot markets, not derivatives, that were at the helm for the past week.

Related: ProShares ETF’s Bitcoin Stash Hits $1.27 Billion as BTC Targets $50K by Mid-April

This was bullish in itself, Glassnode co-founders Yann Allemann and Jan Happel argued on Twitter this weekend, as historically the continued upside has been driven by spot demand.

Derivatives themselves, however, were of little cause for concern, as funding rates remained neutral to negative despite its rise to the top of Bitcoin’s trading range.

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