The price of Bitcoin has gone up and down several times over the last week. On Wednesday, BTC briefly rose to $41.7k, but quickly collapsed back into the $39k range. On Thursday, it managed to recover $41k and, in fact, it opened around the same price even on Friday. On March 19, it saw an increase to $42,400 for the first time since March 3.
From a technical perspective, Bitcoin has two resistance barriers to overcome to start its full-fledged bull run. The first level costs around $45k and the other around $52k. Such price marks have acted as roadblocks and denied the real currency entry to the “elite bull suite” in the recent past. Therefore, only if BTC successfully breaks above them would I be in a position to ignore their downtrend.
Having said that, it doesn’t mean that BTC’s price movement is only forward and up after it breaks above $52k. Taking profits, pullbacks, and pullbacks would follow, but Bitcoin would be in a much better position to rally.
Double check of price levels
To confirm the goals, let’s take a look at Mayer’s multiple readings. This metric was created to compare and analyze the price of Bitcoin with its previous movements. Every time Bitcoin has risen, the reading for this metric has mostly reflected readings above 1.5. However, now, it is halfway up at 0.86, indicating that Bitcoin has not even started to prepare for the next bull run.
Furthermore, the price of Bitcoin continues to hover in the ‘bearish’ band (light green) on the chart. For it to enter the bullish (yellow) band, it would have to cross $53,522., which is quite close to its $52k technical test level.
Furthermore, as far as previous precedents are concerned, Bitcoin has always reached the bullish zone after spending time in the bearish arena. However, the amount of time it has taken to do so has varied.
Considering the state of the market, it doesn’t look like sentiment will change immediately. If BTC gets a weekly close below $35k, then the entire bullish thesis would be fractured. It would continue its correction phase for a few weeks before starting its next stage.
Although at this stage it is not a question of whether, when Bitcoin spreads its wings and takes off, market participants should be patient and wait for the coin to reach one of said levels before judging the trend.