Bitcoin (BTC) a new high to nearly $45,000 overnight to March 27 as it looked like the weekend would achieve a decisive upward close.
Weekly closing of prime importance
While still within its extended trading range with a maximum of $46,000, the pair was still on the radar of long-term traders as the weekly close approached, and this is likely to be the highest bitcoin of the year so far.
Popular trader and analyst Rekt Capital added that Bitcoin’s 21-week exponential moving average (EMA) was also in the reversal line as resistance – something that served bulls well in 2021.
– Rektcapital March 26, 2022
However, some were not convinced by the strength of the current levels. Among them was Crypto trader and analyst Ed, who warned that buying into the long-term resistance of the nearly $46,000 annually open makes no sense in terms of the risk/reward ratio.
Try to convince me, spot buying the resistance here is a bad idea.
You won’t work with this kind of R:R.
You might get a little lower entry but you might also miss a brutal escape and never get a re-test.
Maximum risk is 1R
Reward 4.9 riyals pic.twitter.com/E7wo0MC0pB
– Ed_NL (Crypto_Ed_NL) March 26, 2022
As Cointelegraph mentionedOthers have already argued that a more significant trend break was necessary for Bitcoin to turn the general bullish trend and take long positions.
Spot demand calms market watchers
Meanwhile, on-chain research has revealed that spot markets, not derivatives, have been in charge over the past week.
This was bullish in itself, Glassnode founders Yann Allemann and Jan Happel argued on Twitter this weekend, given that historically, the continued rally has been driven by spot demand.
– (Negentropic_) March 26, 2022
The derivatives themselves did not provide cause for concern, however, such as Financing rates It remained neutral to negative despite the advance towards the top of the bitcoin trading range.
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