If the bulls breakthrough USD 39,500, the ground will be clear for USD 44,500, the most significant resistance. There are still increasingly low lows, but the support zone around USD 35,000 indicates the long-term upward trend continues.
The conflict between Russia and Ukraine caused the price of various risk assets to drop sharply, but those losses have disappeared. The value of Bitcoin (BTC) has been increasingly high in the last week, but nobody knows where it is heading next.
Bitcoin is trading at around USD 38,251 and has accumulated a loss of 0.6% in the last week. Its daily trading volume is above USD 19.40 billion, and its market capitalization is about USD 725.63 billion, according to CoinGecko.
Although the price has had a significant rally, the risk of another drop remains.
The cryptocurrency market recently moved in a highly correlated way with the stock market due to the growing war tension in Europe.
Investors seem to have taken advantage of the fear to buy at low prices regardless of the conflict. They probably foresaw that the value of Bitcoin had already reached the bottom. Asserting that would be somewhat hasty, but nobody rules out that scenario.
If the tension between Russia and Ukraine continues to grow, investors will likely reduce their risk exposure. That would lead to further drops in the cryptocurrency market as a whole.
However, it would not be of concern in the medium/long term since the global situation may generate more increases in price. Quantitative expansion, low-interest rates, excess liquidity, geopolitical uncertainty, and inflation will contribute.
Weekly Prediction about the BTC Price
The daily BTC chart shows that buying pressure swallowed up the recent losses, leaving a significant rejection of low prices.
The market movement prevented the support from breaking at USD 36,800, somewhat stabilizing the balance of probabilities.
The bulls now want to drive the price, but the resistance at USD 39,500 hampers them. If they break through it, the ground will be clear for USD 44,500, the most significant resistance. The price must overcome that level to confirm that the bulls have resumed control.
If the value of Bitcoin does not break through resistance at USD 39,500 in the next few hours, the risk of a further drop increases.
The price will likely touch the support zone around USD 35,000 again. However, the rejection of low prices is a good sign for those trusting in the medium/long term.
Weekly Analysis of the Bitcoin Price
The weekly BTC chart clearly shows the recent rally is not too big, as there are still increasingly low lows.
However, the significant support zone around USD 35,000 is a good sign, as it indicates that the long-term upward trend remains intact.
The rejection of low prices indicates that there could be a higher rally in the next few hours/days.
However, that will depend on the evolution of the conflict in Europe. An action that makes the markets shake will cause the price of Bitcoin to stagger.
To conclude, this weekly prediction about the BTC price leans slightly towards the buyers. However, the price should at least break through resistance at USD 43,000 to confirm a significant rally.
By Alexander Salazar
