Bitcoin, the king of cryptocurrencies, has once again proven its resilience by reaching a new all-time high of $27.30K. Despite lingering sell pressure, the bulls remained adamant, and BTC retested the $26K price level twice within a week. This price surge was partly fueled by investors seeking alternative investments following the U.S. bank run and declining faith in the traditional banking system.
The recent price hike comes after First Republic Bank faced more trouble, highlighting uneasiness in the U.S. banking sector. This has led some analysts to speculate whether BTC’s rally is a flight to safety for investors looking to hedge against the U.S. financial instability.
BTC had broken below the $25K mark amidst increased market uncertainty caused by the U.S. bank run. However, the king coin bounced back from $20K and cleared the hurdle at $22K. It was then temporarily confined within the $23.98K – $25.07K range until breaking above it on March 14, making a new high of $26.39K.
At present, BTC has hit the $26K zone and closed above it, setting it up for a new high in the $27K area. If the bulls defend the new support level at $27,208, BTC could retest $27,757 or increase to $28.17K. Other key resistance levels are at $28.65K and $29.51K.
On the other hand, short-sellers could gain leverage if BTC closes below $27.21K. But, to dent the bullish sentiment, bears must clear the hurdle at $26.37K and $25.07.
A break below the 26-period EMA ($25.29K) could attract more aggressive selling. However, the drop could likely slow to $23.98K or 200 EMA ($23.06K).
The Relative Strength Index (RSI) has retreated to the overbought zone, highlighting increased buying pressure. Similarly, the On Balance Volume (OBV) has made new highs, indicating genuine demand for BTC.
As of March 17, BTC’s exchange flow balance was highly positive, indicating that more BTCs flowed into exchanges than out, suggesting increased selling pressure as BTC retested the previous resistance of $26.37K. Similarly, the supply on exchanges spiked further, reinforcing the lingering selling pressure. However, as of the time of writing, these metrics have slightly declined, and the weighted sentiment has improved, reiterating investors’ confidence in BTC despite the lingering selling pressure.
In conclusion, BTC has reached a new high, and the shorting opportunities may be limited. The bulls are firmly in control, and the long-term outlook for BTC remains positive. However, investors should exercise caution and carefully monitor market trends to make informed decisions.
