Several metrics related to supply and demand, like the 43-month low of BTC reserves on exchanges, are bullish. The long-term strength is undoubtedly upward, suggesting the bulls could drag the price towards new highs.
A broad rally in the cryptocurrency market indicates there could be further gains in the short term. The excellent behavior of Bitcoin (BTC) leads to the current positivity, and that scenario could still be more optimistic.
BTC is trading at around USD 47,615 and has accumulated a 15.2% gain over the last week. Its daily trading volume is above USD 31.72 billion, and its market capitalization is about USD 904.53 billion, according to CoinGecko.
Since the price of BTC has begun to rally slowly but with determination, the fear has vanished.
The Terra Foundation is accumulating BTC for its treasury, causing excitement among investors.
Data from the analytics platform CryptoQuant indicates that the dominant force is buyers.
Almost all the metrics that relate to supply and demand are bullish. The most prominent is the 43-month low that BTC reserves reached on exchanges.
The indicators that track the activity of the Bitcoin whales are also mainly bullish.
While the market sentiment tilts slightly towards the bullish side, the technical oscillators look neutral.
That overall general suggests that the gains will extend in the short term. For that reason, it is time for investors to review the price charts.
The Weekly Technical Analysis of the Price of Bitcoin
The daily BTC/USDT shows excellent behavior, which allowed the price to cross a significant descending line.
Horizontal resistance at the USD 44,500 level is hampering the price. Although there may be difficulties, the previous behavior of Bitcoin indicates a bullish weekly forecast.
The price crosses the 8-day EMA and 18-day SMA to the upside, and the latter two may serve as dynamic supports.
The ground will be clear for USD 47,900 when the price breaks through USD 44,500. If Bitcoin goes through the 200-period SMA, it would be an excellent sign for buyers.
Before thinking of selling, there should first be increasingly low lows, which do not seem likely to happen soon.
The Scenario Looks Encouraging for the Long Term
The monthly chart shows an optimistic scenario since the March candlestick is causing the rejection of low prices. Besides, it shows no intention of allowing sellers to cause trouble in the short term.
The price of Bitcoin remains within a broad horizontal range, which has caused difficulties in making accurate weekly forecasts.
However, the long-term strength is undoubtedly upward. That suggests the bulls could give a surprise anytime, dragging the price towards new highs soon.
Buyers are regaining control, defending the moving averages as dynamic supports. There is a growing probability that the price will resume the higher trend.
Since the price of BTC continues above USD 32,000, nothing can lead to thinking that the crypto winter has begun. It could be dangerous for investors to go against the dominant trend.
The price of Bitcoin always leads the way in the crypto market, which leads investors to review how it moves. The above analysis can help better understand the behavior of the pioneering cryptocurrency and make accurate decisions before buying.
By Alexander Salazar
