Bitcoin continues to demonstrate strength, outperforming traditional markets.
Bitcoin has regained prominence following a more than 20% increase in market value over the last three days. Additional upward pressure may be sufficient to initiate a fresh upswing.
Bitcoin Recovers Previously Lost Ground
Bitcoin continues to move upward, indicating the possibility of the start of a new rally.
The flagship cryptocurrency is increasing in value as the buying pressure intensifies. At press time, prices had risen to an intraday high of $45,350, capping three consecutive days of gains. While global markets remain unstable, it appears as though Bitcoin is headed for greener pastures.
The parabolic SAR indicates that the downturn that has been engulfing BTC since early November 2021 may have found an end. On the weekly chart, the stop and reversal points moved below the price of Bitcoin, which is considered a favorable sign. The latest reversal suggests that the trend has shifted from bearish to positive.
Historically, parabolic SAR has been extremely effective at forecasting the price movement of Bitcoin. BTC’s price increased by 73 percent, 644 percent, 43 percent, and 250 percent the past four times the stop and reversal method changed from bearish to bullish on the weekly chart.
While the chances appear to be in favor of bulls, IntoTheBlock’s IOMAP indicates that the top cryptocurrency may yet face significant opposition in the near future.
Previously, around 3.40 million addresses purchased over 1.71 million BTC between $47,000 and $48,500. Given the importance of this supply barrier, traders may want to wait for a definitive weekly finish above it to confirm the bullish picture. Bitcoin could possibly reach $56,000 if it breaks through the $48,250 barrier.
Notably, Bitcoin must maintain a price above $38,300 in order for the bullish argument to prevail. Failure to maintain a hold above this support level may prompt a sell-off, bringing prices back to $30,000.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.