Jonathan Morgan
Independent Analyst
- Bitcoin price continues to surprise bulls and bears alike with its performance.
- Monday’s price action extended the bullish close on Sunday.
- Traders and investors are looking out for signs of a pullback before Bitcoin continues higher.
Bitcoin price has performed spectacularly over the past two weeks. From the week of March 18, 2022, to the current weekly high, BTC is up more than 24%. Additionally, Bitcoin hit a new 2022 high and is likely to close above the January open, turning Bitcoin positive for 2022.
Bitcoin price hits several bullish milestones; a pullback is expected but not a certainty
Bitcoin price action has been in massive bullish rise over the past few weeks that bulls and bears alike expect a pullback. However, that may not occur. Bitcoin has already made new 2022 highs, and if it has a daily close that puts BTC positive for 2022, that could trigger some major institutional positioning.
Institutions often look for yearly highs and lows to be established in January and July – if an instrument is trading above the January open, positions are often bought, added, and supported. If an instrument is below the January open, positions are often sold and reduced. However, when a ceiling is broken, institutions often switch the position management to turn that ceiling into a new floor.
In other words, if institutional participation displays historically normal behavior and positioning, then Bitcoin price may see the $47,500 to $48,000 price range as the new 2022 ‘low’ until July. The next price zone to test as resistance is the $50,000 value area in that scenario.
BTC/USD Daily Ichimoku Kinko Hyo Chart
However, confirmation is needed to confirm a change in institutional positioning. There is a strong likelihood that Bitcoin price and the broader cryptocurrency market may experience some profit taking for the remainder of the week. Bitcoin price would likely return to the breakout of the bear flag at $44,725, where the daily Tenkan-Sen ad 61.8% Fibonacci retracement currently exists.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Coinbase lists WIF perpetual futures contract as it unveils plans for Aevo, Ethena, and Etherfi
Dogwifhat perpetual futures began trading on Coinbase International Exchange and Coinbase Advanced on Thursday. However, the futures contract failed to trigger a rally for the popular meme coin.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Ethereum cancels rally expectations as Consensys sues SEC over ETH security status
Ethereum (ETH) appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the Securities & Exchange Commission (SEC) and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US Federal Bureau of Investigations (FBI) has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission (SEC) is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?