Bitcoin’s volatility increased on Friday. The price briefly dropped to around $114700 local level before stabilizing inside a small range of consolidation. Bulls and Bears are locked in an intense tug of war that intensifies speculation on the entire market. The price is still below the $120,000 psychological mark. Bitcoin has held key support despite the recent pullback. This suggests that the bullish trend is still intact.
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Axel Adler from CryptoQuant believes that the week of March 22-26, 2018 is the one with the highest level of selling pressure in this bull cycle. Adler notes that only 12 weeks—about 7.3% of the entire cycle—have shown equal or greater selling pressure. It is clear that the current market activity was intense, as investors took significant profits without a complete breakdown in prices.
A high degree of uncertainty has been introduced by the combination of high selling volume and stable prices. The market participants will be watching for any confirmation that there is either an even deeper correction, or renewed efforts to breach the $120K mark. The week is coming to an end. Bitcoin’s The next big move could be determined by the ability of this cycle to keep its consolidation zone.
Bitcoin remains strong amid heavy selling
Adler highlighted The selling volume this week was among the top 7% most extreme during the current Bitcoin bull-cycle. Bitcoin showed remarkable resistance despite intense pressure to sell, and recovered $117,000 in the week. This is considered a good sign, as it reflects bullish strength despite aggressive distribution.
Bitcoin’s dominance relative to Ethereum, and other altcoins is beginning to diminish. The analysts have noticed this change and consider it a turning point. A continued decrease in Bitcoin dominance paired with growing strength in altcoins could mark the beginning of the long-anticipated altseason—a period where capital rotates from Bitcoin into alternative cryptocurrencies, driving strong gains across the sector.
Bitcoin’s bullish momentum is not over, despite its recent consolidation and recovery above important support. BTC may be preparing for a new leg up if buyers defend the range. This would put pressure on shorts, and help reignite market confidence.
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BTC Tests Resistance After Strong Recovery
Bitcoin (BTC), which is traded on the four-hour chart, has recovered sharply after it fell to the support level of $115,724. Bulls have defended this area aggressively after a recent drop, proving that it is a short-term critical demand zone. Now, the price is pushing against the SMA of 100 periods ($117.822) to try and reclaim it as a level for support.
BTC’s chart structure shows that it is locked into a range of consolidation between $115.724 and $122,077. This week, the retesting of the lower border and the subsequent rebound signals that there is still interest among buyers despite earlier strong selling pressure. The market is still active, as evidenced by the high volume.
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What is important to monitor now is if BTC can hold the $118,000.00 level and flip over 100 SMA. Once confirmed, next up will be the resistance of the upper range at $122,077. If this level is broken, it could lead to new highs.
Chart from TradingView, Featured Image from Dall E
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Source: www.newsbtc.com
