{"id":46315,"date":"2023-03-15T09:21:50","date_gmt":"2023-03-15T09:21:50","guid":{"rendered":"http:\/\/egrowonline.com\/?p=46315"},"modified":"2023-03-15T09:21:50","modified_gmt":"2023-03-15T09:21:50","slug":"4-signs-the-bitcoin-price-rally-could-top-out-at-26k-for-now","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=46315","title":{"rendered":"4 signs the Bitcoin price rally could top out at $26K for now"},"content":{"rendered":"


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Bitcoin (BTC<\/a>) received a substantial boost this week as United States\u00a0inflation levels for February<\/a>\u00a0were in line with market expectations. On March 14, the BTC\/USD pair surged to a 2023 peak at $26,550 after the news.<\/p>\n

But, while the macroeconomic conditions may currently favor risk-on buyers, certain on-chain and market indicators hint at a potential correction in the near term.<\/p>\n

BTC flows back to exchanges as price rises<\/h3>\n

On March 13, Glassnode\u2019s exchange flow data recorded the most significant inflow to exchanges since May 2022. This means more supply on exchanges and potentially higher selling pressure.<\/p>\n

The coin days destroyed indicator<\/a>, which measures the time-weighted transfers of Bitcoin, also shows a small spike, indicating that old hands are moving coins. The indicators might signal profit booking by long-term holders, which can lead to a correction.<\/p>\n

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Bitcoin exchange netflow volume. Source: Glassnode<\/em><\/figcaption><\/figure>\n

Bitcoin funding rates, RSI jump<\/h3>\n

Moreover, the funding rate for Bitcoin perpetual swaps is also elevated with the latest Consumer Price Index print<\/a>. In other words, more traders are betting on the upside with leveraged positions, increasing the risk of a correction.<\/p>\n

Funding rate for Bitcoin perpetual contracts. Source: Coinglass<\/em><\/figcaption><\/figure>\n

The sharp price movement has also recorded a significant spike in the Relative Strength Index (RSI), a technical momentum indicator, with a reading of as high as 82. This means that BTC\/USD is generally considered \u201coverbought\u201d in the short term.<\/p>\n

BTC vs. USD painting a bearish pattern<\/h3>\n

BTC price is currently forming a broadening wedge pattern, which depicts the heightened level of volatility. Both buyers and sellers are pushing the price beyond support and resistance levels, with the reversals coming quickly. <\/p>\n

BTC\/USD 4-hour price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

Buyers failed to stage a pattern breakout on March 14, and are now facing resistance at its ceiling of $26,700. At the same time, there is a chance that the price will correct back toward the bottom of the pattern, around $19,500, in the coming days. <\/p>\n

On the contrary, if Bitcoin\u2019s price breaks above the top trendline, the bulls will likely pile in to push the price toward $30,000. There are potentially welcome signs for the bulls that this could happen \u2014 namely in the BTC options and futures markets.<\/p>\n

As Cointelegraph reported, there\u2019s still room to run<\/a>, as the indicators have yet to reach previous peak levels.\u00a0\u00a0<\/p>\n

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin (BTC) received a substantial boost this week as United States\u00a0inflation levels for February\u00a0were in line with market expectations. On March 14, the BTC\/USD pair surged to a 2023 peak at $26,550 after the news. But, while the macroeconomic conditions may currently favor risk-on buyers, certain on-chain and market indicators hint at a potential correction […]<\/p>\n","protected":false},"author":1,"featured_media":46316,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[40],"tags":[14470,50,195,213,3471,114],"class_list":["post-46315","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-analysis","tag-26k","tag-bitcoin","tag-price","tag-rally","tag-signs","tag-top"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2023\/03\/fef9b7a0-1566-4d6d-8fef-3f2916fe6bf0.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/46315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46315"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/46315\/revisions"}],"predecessor-version":[{"id":46317,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/46315\/revisions\/46317"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/46316"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46315"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}