• Bitcoin [BTC] recently made a new high, retesting the $26K price level twice within a week.
• Investors sought out BTC as an alternative following the U.S. bank run and declining faith in traditional banking system.
• BTC’s value was hovering around its June 2022 level, with sentiment being positive despite increased sell pressure.
Bitcoin Reaches New Highs
Bitcoin [BTC] recently made a new high, retesting the $26K price level twice within a week due to investors seeking out BTC as an alternative following the U.S. bank run and declining faith in traditional banking system. At press time, BTC’s value was hovering around its June 2022 level, with sentiment being positive despite increased sell pressure.
Potential Rally
Investors partly fueled the retest of $26K, seeking alternatives following the U.S. bank run and declining faith in the traditional banking system. If bulls defend the new support at $27,208, BTC could potentially retest $27,757 or increase to $28.17K with other key resistance levels at $28.65K and $29.51K respectively . Alternatively, short-sellers could gain leverage if BTC closes below the hurdle of $27.21K by clearing further hurdles at $26.37K and $25.07 to dent bullish sentiment . A break below 26-period EMA ($2529 K) could attract more aggressive selling but could slow down to 200 EMA ($2306 K). The Relative Strength Index (RSI) retreated to overbought zone while On Balance Volume (OBV) made new highs , showing genuine demand for BTC .
Spike in Supply on Exchanges
The exchange flow balance on 17 March showed more Bitcoin flowing into exchanges than out which indicated increased selling pressure as it tested previous resistance of 2637 K . Similarly , supply on exchanges spiked further , reinforcing lingering sell pressure on 17 March .
Risk Factor
However , investors must be aware that any significant drop below 2721 K could lead to bearish momentum with hefty losses . Furthermore , any break below 26 period EMA 2529 K might attract more aggressive selling activity resulting in a drop towards 200 EMA 2306 K .
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