Bitcoin (BTC) hovered around $85,000 as the week closed on March 23, amid growing enthusiasm about a significant shift in trends. Market data illustrated that BTC/USD gained momentum over the weekend, reflecting an increase of 1.5% for the day, contributing to a broader upswing in the cryptocurrency market that also buoyed several prominent altcoins.
A well-known trader expressed in their latest analysis that the upcoming week would be crucial in determining the market’s direction for a larger time frame, highlighting the closing values of Bitcoin futures from a major exchange.
This sentiment was echoed across the market as traders anticipated a potential rally leading into the end of the month. An analyst noted that there were promising signs of a breakout on daily timeframes regarding Bitcoin’s relative strength index (RSI), suggesting that the Daily RSI was showing early indicators of retesting the downtrend from November 2024 as potential new support.
For another analyst, recent price levels carried significant meaning. For the first time in half a year, he pointed out that BTC/USD was on the verge of achieving an important bullish RSI divergence on weekly charts, confirming the position for what could be a notable shift.
Meanwhile, a trading group dismissed concerns that Bitcoin was at risk of entering a prolonged bear market. They indicated that the local bottom was established at $76,000, a level already revisited this month. They summarized that while many traders were panicking and declaring a bear market, the long-term trend channel remained robust, suggesting that this correction does not undermine the bullish trend but rather affirms it.
They acknowledged, however, that continued upward movement may take some time. The duration of this correction could be influenced by various factors, including news and macroeconomic indicators. Their educated guess pointed towards a timeframe of a few weeks for a potential rebound.
This piece does not provide investment advice or endorsements. Every investment and trading decision involves risks, and readers should perform their own research before making any choices.