Bitcoin ( $29,006.00 ) has gained 7,000 points in market value over the past ten days.
The top crypto asset has now entered a significant resistance zone.
A decisive close above $45,500 could catapult Bitcoin ( $29,006.00 ) to $51,000.
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Bitcoin ( $29,006.00 ) has reached a crucial resistance area after surging by nearly 19% over the past 10 days. However, it remains to be seen whether the top cryptocurrency will have the strength to slice through it to resume its uptrend.
Bitcoin ( $29,006.00 ) Tests Resistance Again
Bitcoin ( $29,006.00 ) is once again threatening to break out.
The leading cryptocurrency continues to trend up, gaining over 7,000 points in market value in the past 10 days. It’s broken above $45,000 for the first time since Feb. 10, trading at $45,013 at press time. Increased buying pressure from the likes of the Luna Foundation Guard, which is currently accumulating Bitcoin ( $29,006.00 ) in order to increase Terra’s UST reserves, and renewed confidence among market participants have helped Bitcoin ( $29,006.00 ) flourish this week.
Several on-chain metrics have hinted that a trend reversal could soon play out. However, Bitcoin ( $29,006.00 ) must first break through the $45,500 resistance zone to be able to advance further.
The top crypto’s trading history shows that this hurdle has been challenging to break. Every time Bitcoin ( $29,006.00 ) has tested the $45,500 resistance area since the beginning of the year, it has failed to break it and posted a significant retrace. For instance, when it was rejected from the key level in mid-January, mid-February, and early March, it shed losses of over 18%.
While Bitcoin ( $29,006.00 ) is attempting to overcome resistance again, traders appear skeptical.
Transaction data from Binance Futures shows that the BTCUSDT Long/Short Ratio has declined to a 0.76 ratio as of Mar. 25. Such market behavior indicates that roughly 57% of all trading accounts on the platform are net-short on Bitcoin ( $29,006.00 ) .
The high levels of pessimism surrounding Bitcoin ( $29,006.00 ) ’s future price performance may act as a warning signal that a short squeeze is underway.
A spike in upward pressure that pushes Bitcoin ( $29,006.00 ) beyond the $45,500 resistance zone could trigger a cascade of liquidation in the futures market, catapulting prices higher. The Fibonacci retracement indicator, measured from the November all-time high at nearly $70,000 to the late January low at $33,000, suggests that Bitcoin ( $29,006.00 ) could target $51,000 if it successfully overcomes resistance. However, failing to breach such a crucial supply wall could result in a pullback to $40,700.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
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