Bitcoin (BTC) hit a new high of around $45,000 overnight before March 27, when the weekend seemed to be a decisive bullish close.
BTC/USD 1-hour light chart (bit-mark). Source: Trading View
Weekly closing is central
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair has retraced to higher levels seen a few days ago after dropping just over $45,000.
While the pair is still in an extended $46,000 trading range, it remains on the radar of long-term traders as the week close approaches, and this is likely to be Bitcoin’s highest price this year.
1 week BTC/USD light chart (bit mark). Source: Trading View
Popular trader and analyst Rekt Capital added that Bitcoin’s 21-week exponential moving average (EMA) also coincides with a reversal as resistance – something that has worked well for bulls in 2021.
However, some were not convinced by the strength of today’s levels. Among them was another crypto trader and analyst, Ed, who warned that buying at long-term resistance at around $46,000 per year does not make sense in terms of risk-reward ratio.
As Cointelegraph has reported, others have already argued that a larger reversal of trend is needed for Bitcoin as a whole to become bullish and long.
Immediate Demand Reassures Market Watchers
Meanwhile, consecutive polls have shown that spot markets, not derivatives, were at the helm last week.
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That in itself is optimistic, Glassnode founders Jan Allemann and Jan Happel said on Twitter this weekend, given that the uptrend has historically been driven by spot demand.
However, derivatives themselves were not a concern, and funding rates remained neutral to negative despite the move to the top of the bitcoin trading area.