Bitcoin on the Brink of a New Uptrendadmin
- Bitcoin surged above $45,000 Wednesday.
- The bullish price action signals a potential trend reversal.
- Breaking $48,250 could send BTC towards $56,000.
Share this article
Bitcoin is back in the spotlight after gaining more than 20% in market value over the last three days. Further upward pressure may have the strength to kick start a new uptrend.
Bitcoin Regains Lost Ground
Bitcoin continues trending upwards, signaling the possible beginning of a new uptrend.
The flagship cryptocurrency is on the rise as the buying pressure behind it increases. Prices surged to an intraday high of $45,350 at press time, following three days of upward momentum. While global markets remain on shaky grounds, it appears that Bitcoin could be heading to greener pastures.
The parabolic SAR suggests the downtrend BTC has been trapped in since early November 2021 may have reached exhaustion. The stop and reversal points moved below the price of Bitcoin on the weekly chart, which is considered to be a positive sign. The recent flip indicates that the direction of the trend changed from bearish to bullish.
Historically, parabolic SAR has been highly effective in determining the course of Bitcoin’s price. The last four times the stop and reversal system flipped from bearish to bullish on the weekly chart, BTC’s price surged by 73%, 644%, 43%, and 250%, respectively.
Even though the odds appear to favor the bulls, IntoTheBlock’s IOMAP reveals that the top cryptocurrency may still face stiff resistance ahead.
Nearly 3.40 million addresses had previously purchased more than 1.71 million BTC between $47,000 and $49,500. Given the significance of this supply wall, traders may need to wait for a decisive weekly close above it to confirm the optimistic outlook. Breaking through the $48,250 barrier could then propel Bitcoin towards $56,000.
It is worth noting that Bitcoin must remain trading above $38,300 for the bullish thesis to prevail. Failing to hold above this support level could trigger a sell-off that sends prices back towards $30,000.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
Share this article
NFT Express: Your on-ramp to the world of NFTs
At Tatum, we’ve already made it super easy to create your own NFTs on multiple blockchains without having to learn Solidity or create your own smart contracts. Anyone can deploy…
As Sanctions Pile, Bitcoin Flips the Russian Ruble
Thanks to unprecedented financial sanctions from the West, Bitcoin now has a higher market capitalization than the Russian ruble. Russian Ruble Plummets Following Western Sanctions Bitcoin has flipped the Russian…
CME Group To Offer Micro Bitcoin and Ethereum Options
The world’s largest futures and options exchange by daily volume has announced its plans to offer micro Bitcoin and micro Ethereum options starting March 28, 2022. New Options Contracts at…
Latin America Continues Steps Toward Bitcoin Adoption
Two Latin American nations, Mexico and Brazil, have taken initial measures toward Bitcoin adoption. Crypto Interest in Latin America Grows More Latin American countries are exploring cryptocurrency regulation. Since El…
Leave a Reply