For the first time this year, $48,000 is breached, with formerly cautious critics gradually turning bullish.
Bitcoin (BTC) grilled $48,000 for a second time on March 29 following a brief overnight pullback that provided a welcome reprieve from the upside.
A trader expresses “serious reservations” about a drop below $30,000
TradingView data tracked BTC/USD as it fell to a local low of $46,900 before reversing course and breaking the $48,000 barrier prior to Tuesday’s Wall Street open.
While consolidating, the pair held support near the annual open, increasing optimism that the 2022 trading range had been finally breached.
While prominent trader Crypto Ed acknowledged the necessity for a further decline in an ideal scenario, he stated that the time had come to be “extremely positive” on BTC going forward.
“I’m hoping for a little more downside today, but that’s generally too much to expect in these types of bull markets,” he stated in his latest YouTube video.
Zooming out, Ed noticed an ongoing building project that had been in place since the summer’s lows last year. While these may theoretically reemerge, there were “serious reservations” about such a scenario, and if the bullish follow-through occurred, the target for completion was well above current all-time highs.
“This gives me an approximate objective of $80,000,” he concluded.
Meanwhile, no signs of an intraday downturn were noticeable as Bitcoin bulls struggled for $48,000 support at the time of writing.
Your ally is the supertrend.
Traders were definitely on the lookout for trend confirmations Tuesday, a sentiment reinforced by the breach of the range ceiling.
For analyst Matthew Hyland, it was worth noting Bitcoin’s supertrend indicator on the three-day chart.
Supertrend indicators determine if an asset is in an up or down trend based on its price range and volatility data. They provide the signal after a trend has begun, and hence serve as important confirmation devices when used properly.
Bitcoin has been trading in a sideways range for the entirety of 2022, and its decline from all-time highs triggered an early December three-day chart supertrend bear flag.
“The Bitcoin 3-Day Supertrend is dangerously close to reversing!” Hyland made the announcement.
“We’ve been hoping to see this flash green since the beginning of December.”
BTC/USD would need to reach and close over $49,000 on the three-day chart to confirm, he added.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
