BTC broke through a key price level as investor sentiment soared in the sector, but analysts warn $44,000 should be support to signal a macro reversal.
On March 24, morale in the cryptocurrency ecosystem skyrocketed as several days of positive moves helped lift Bitcoin (BTC) above $44,000 and Ethereum bulls took control of the $3,100 level.
According to Minneapolis Federal Reserve Chairman Neil Kashkari, the rise in the price of BTC comes amid rising inflation and interest rates that could increase up to seven times during 2022.
1-day BTC/USDT chart. Source: Trading View
Data from Cointelegraph Markets Pro and TradingView shows that after trading at around $43,000 during the morning session on . On March 11, a midday surge saw the price of BTC hit an intraday high of $44,186 where it hit a major resistance zone.
Bitcoin should turn $44,000 into support
A look at the weekly chart shows that “Bitcoin is breaking out of the weekly ascending triangle,” according to market analyst and Twitter user Rekt Capital, who posted the chart below describing the formation that has been developing over the past few months.
Weekly BTC/USD chart. Source: Twitter
While many are claiming a return of bullish market conditions due to the rapid uptrend, Rekt Capital warned that “to confirm this BTC breakout” it is necessary to “reverse the top of the ascending triangle into support (e.g. above the weekly close). ”
Rect Capital said:
“Rising wicks outside of this apex of the ascending triangle have happened before (orange circles)”
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The importance of the resistance that BTC is currently facing was also addressed by crypto trader and Twitter user Sheldon Sniper, who posted the chart below, highlighting the $44,000 to $46,000 zone.
Hourly BTC/USDT chart. Source: Twitter
“Forty-four thousand dollars – $46,000 – is a very important area for the bulls to break out. I expect a short-term pullback into this zone, but exit from this zone in the coming days. [The market] is definitely showing good strength.”
The total market capitalization of cryptocurrencies currently stands at $1.997 trillion, with a Bitcoin dominance rate of 41.8%.
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