{"id":2938,"date":"2022-03-28T10:37:00","date_gmt":"2022-03-28T10:37:00","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=2938"},"modified":"2022-03-28T10:37:00","modified_gmt":"2022-03-28T10:37:00","slug":"buy-pressure-in-bull-market-territory-5-things-to-know-in-bitcoin-this-week","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=2938","title":{"rendered":"Buy pressure \u2018in bull market territory\u2019 \u2014 5 things to know in Bitcoin this week"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) begins the last week of March with a bang after returning to its yearly opening price above $46,000.<\/p>\n<p>In a surprisingly strong upward move for a weekend, BTC\/USD began surging upwards Saturday, continuing overnight to challenge its highs from the start of 2022.<\/p>\n<p>Coming against an ongoing macroclimate of considerable uncertainty, strength in Bitcoin is naturally being taken with a pinch of salt this month. The reaction is understandable given that previous attempts to break out of its multi-month trading range have all ended in failure.<\/p>\n<p>Despite volatile periods, bulls were always left disappointed and Bitcoin subsequently not only reversed but often revisited the lower end of its range, costing both short and long positions dearly.<\/p>\n<p>Nonetheless, the hope is that this time really will be different \u2014 analysts had long argued that only a breakout above the range ceiling, formed by the yearly open around $46,200, would be enough to cause a paradigm shift.<\/p>\n<p>Now that this is in action on the charts, attention is focusing on the final hurdle \u2014 cementing these multi-month resistance levels as support.<\/p>\n<p>With the process ongoing Monday, Cointelegraph takes a look at potential triggers that could make or break this important episode in Bitcoin price action.<\/p>\n<h2>Bitcoin wipes out the 2022 dip<\/h2>\n<p>\u201cGradually then suddenly,\u201d or pure chance? Traders are still trying to make sense of Bitcoin\u2019s newfound strength this week.<\/p>\n<p>It\u2019s been a sight absent from the chart since the New Year \u2014 BTC\/USD is back at $47,000. After jumping almost $3,000 in 24 hours, the largest cryptocurrency dealt a firm blow to resistance levels that had kept bulls firmly in their place for months.<\/p>\n<p>The significance of $46,000 has been a hot topic for almost as long \u2014 a return to the yearly open, many said, would be the signal that Bitcoin was ready for bigger things once more.<\/p>\n<p>Few would have thought that the phenomenon would play out \u201cout of hours,\u201d however. Suspicions over the rally\u2019s real strength are naturally pervasive on social media as the week gets underway, just as they were as the rally itself began.<\/p>\n<p lang=\"en\" dir=\"ltr\">march 2020 &#8211; ct was bearish, fooo was bullish<\/p>\n<p>may 2021 ct was bullish, fooo was bearish<\/p>\n<p>july 2021 ct was bearish, fooo was staking fooo&#8217;s entire reputation on more upside<\/p>\n<p>november 2021 fooo began dumping, ct was bullish<\/p>\n<p>now ct is bullish and fooo is bearish<\/p>\n<p>Wholesome<\/p>\n<p>\u2014 fooo &#8211; Mayor of Goblin Town (@bitcoinpanda69) March 26, 2022<\/p>\n<p>Nonetheless, even the more cautious voices are no longer discounting the potential for further upside, even if the longer-term prognosis remains downhill.<\/p>\n<p lang=\"en\" dir=\"ltr\">$BTC update <br \/>Yearly open tagged <\/p>\n<p>Flip to supoort then 50k next with potential move into 53k imo<\/p>\n<p>\u2014 Pentoshi  (@Pentosh1) March 27, 2022<\/p>\n<p>\u201cFundamental buying pressure for Bitcoin has now climbed into bull market territory,\u201d analyst and statistician Willy Woo reported.<\/p>\n<p>Fellow analyst Matthew Hyland, a key supporter of the $46,000 argument, gave a target of $52,000 as the next long-term resistance wall to crack.<\/p>\n<p lang=\"en\" dir=\"ltr\">#Bitcoin has broken above the $46k resistance zone<\/p>\n<p>The next major resistance zone is around $52k: pic.twitter.com\/ueqi5xwkhi<\/p>\n<p>\u2014 Matthew Hyland (@MatthewHyland_) March 28, 2022<\/p>\n<p>In Twitter posts, he added that the move was preceded by a breakout on Bitcoin\u2019s relative strength index (RSI) indicator, a classic signal\u00a0of breakout trends.<\/p>\n<p>RSI assesses how overbought or oversold an asset is at a specific price. In the case of Bitcoin, its score has been climbing off a floor level since mid-January, data from Cointelegraph Markets Pro and TradingView\u00a0shows.<\/p>\n<p>Further development of RSI, therefore, could dictate the extent of the rally, as per historical behavioral norms.<\/p>\n<p><em>BTC\/USD 1-day candle chart (Bitstamp) with RSI data. Source: TradingView<\/em><\/p>\n<h2>Analyst eyes Bitcoin stocks decoupling<\/h2>\n<p>It\u2019s a confusing world out there, and when it comes to how Bitcoin should be acting, the picture does not get any easier.<\/p>\n<p>Inflation, war in Europe and the persistent threat of Coronavirus returning \u2014 to name just three major macro triggers \u2014 have had commentators forecasting doom and gloom for stocks and risk assets alike in 2022.<\/p>\n<p>Just this month, multiple sources warned that Bitcoin could soon face its Waterloo as a dramatic stocks capitulation sparks another March 2020 moment.<\/p>\n<p>The \u201ceasy money\u201d age which followed that event is gone, and only a continuation of quantitative easing would bring back the huge capital flows Bitcoin enjoyed later that year, some argued.<\/p>\n<p>Now, however, Bitcoin appears to be striking out on its own, challenging an intense stock market correlation which in the case of the S&amp;P 500 reached a 17-month high last week.<\/p>\n<p>While the S&amp;P has shaken off the impact of the Russia-Ukraine war and plans for tightening by the United States Federal Reserve, analysis shows that selling has been considerable and shorts are everywhere \u2014 the perfect fuel, ironically enough, for a fresh \u201cshort squeeze\u201d upwards.<\/p>\n<p lang=\"en\" dir=\"ltr\">Equity Traders sold heavily into this rally:<\/p>\n<p>\u2022 One of the biggest weekly purges in history (as a % of Market Cap)<br \/>\u2022 Total $ selling hit a new record<br \/>\u2022 Spec Positioning now significantly Net Short \u2013 at risk of a further squeeze<\/p>\n<p>Similar setups led to some Major rallies. pic.twitter.com\/iTYGfEh5iS<\/p>\n<p>\u2014 Macro Charts (@MacroCharts) March 26, 2022<\/p>\n<p>\u201cRisk-on\/Risk-off correlations to equities is a short term effect. BTC trades this correlation due to short term speculators,\u201d Woo explained in a recent dedicated Twitter thread on the topic. <\/p>\n<p>\u201cBitcoin\u2018s internal demand fundamentals powered by its adoption curve is more powerful. Eventually the market decouples; the last time was Oct 2020.\u201d<\/p>\n<p>Should speculators have been ruling the roost so far this year, then a return of interest in Bitcoin futures could be a trigger to watch going forward. Open interest in Bitcoin futures is now at its highest since December, data from Coinglass shows.<\/p>\n<p><em>Bitcoin futures open interest chart. Source: Coinglass<\/em><\/p>\n<h2>Who wants their money back?<\/h2>\n<p>There is another side to the $46,000 story, making it more than just a symbolic level from the New Year.<\/p>\n<p>As noted by on-chain analytics firm Glassnode this weekend, the area around $45,900 is one with a giant amount of prior buyer activity.<\/p>\n<p>Market entrants bought in on the way down from all-time highs and have been underwater since, thanks to it providing the ceiling for Bitcoin\u2019s 2022 trading range. <\/p>\n<p>A return, Glassnode warned, may ruin the mood as a rush for the exit from those buyers plays out.<\/p>\n<p>\u201cThe next major on-chain resistance for Bitcoin is the Short-Term Holder Realized Price, trading at $45.9k. This metric is the average price paid for BTC by investors who purchased after the October ATH,\u201d it explained on March 25 alongside a chart of its long- and short-term holder realized cap indicator. <\/p>\n<p>\u201cBearish resistance comes from STHs seeking to \u2018get their money back.\u2019\u201d<em>Bitcoin long- and short-term holder realized cap chart. Source: Glassnode\/ Twitter<\/em><\/p>\n<p>So far, short-term holders \u2014 defined as entities holding coins for 155 days or less \u2014 have not triggered a reversal of direction. The start of Wall Street trading, however, could still produce surprises.<\/p>\n<h2>Difficulty should see a new all-time high in days<\/h2>\n<p>Bitcoin\u2019s network fundamentals are certainly determined not to disappoint this year.<\/p>\n<p>The coming week will be no exception, as Bitcoin\u2019s network difficulty climbs to new record highs of approximately 28.67 trillion.<\/p>\n<p>The move will follow a month of losses, which, as Cointelegraph recently reported, accompanied the results of upheaval for miners operating in Kazakhstan.<\/p>\n<p>Difficulty\u2019s next automated readjustment, however, will not only cancel out those losses but add 4.4% to the existing tally, making difficulty greater than ever before.<\/p>\n<p><em>Bitcoin difficulty 7-day average chart. Source: Blockchain<\/em><\/p>\n<p>The implication of increasing difficulty is essentially that mining for block subsidies has never been more competitive, as evidenced by Bitcoin\u2019s equally bullish hash rate data.<\/p>\n<p>In turn, Bitcoin becomes more resistant to network attacks as an increasing miner presence dedicates more and more resources to competing for the same fixed reward \u2014 and thus protecting network participants in the process.<\/p>\n<p>Last year\u2019s 50% hash rate drop, sparked by a crackdown in China which was previously the world\u2019s mining stronghold, now seems nothing more than a distant memory.<\/p>\n<p lang=\"en\" dir=\"ltr\">Effects of \u201cbanning\u201d bitcoin mining. Bitcoin hash rate new ATH, higher than when the \u201cban\u201d happened. pic.twitter.com\/pY5ea1rCJB<\/p>\n<p>\u2014 CZ  Binance (@cz_binance) March 25, 2022<\/p>\n<p>An attempt to ban proof-of-work (PoW) cryptocurrency support in the European Union, meanwhile, failed to gain the support of lawmakers for a second time last week.<\/p>\n<p>Hash rate provided by known mining pools sat at around 219 exahashes per second (EH\/s), according to data from monitoring resource MiningPoolStats, itself the highest level ever recorded.<\/p>\n<h2>Greed is back for the first time since $60,000<\/h2>\n<p>Bearish at the bottom and bullish at resistance \u2014 it\u2019s a classic market sentiment feature which plays out time and time again.<\/p>\n<p><strong><em>Related:\u00a0Top 5 cryptocurrencies to watch this week: BTC, ADA, AXS, LINK, FTT<\/em><\/strong><\/p>\n<p>For the first time in 2022, however, the Crypto Fear &amp; Greed Index has laid out just how exuberant the average crypto investor is feeling.<\/p>\n<p>For the first time since just after Bitcoin\u2019s most recent all-time highs of $69,000 in November, the classic sentiment indicator has entered \u201cGreed\u201d territory.<\/p>\n<p>Its transformation, like sentiment itself this month, has been impressive. Just a week ago, it measured the mood as a normalized score of 22\/100 \u2014 not just \u201cfear,\u201d but \u201cextreme fear.\u201d<\/p>\n<p>Now, it is hot on the way to show the opposite, and as long-term investors know, sustained rallies tend only to come alongside gradual increases in sentiment.<\/p>\n<p lang=\"en\" dir=\"ltr\">Big jump up in the Fear and Greed Index today on that $BTC move.  <\/p>\n<p>Last time we were this far into Greed territory, price was +$60k.<\/p>\n<p>Live chart: https:\/\/t.co\/Jr5151icga pic.twitter.com\/KZtsava7jZ<\/p>\n<p>\u2014 Philip Swift (@PositiveCrypto) March 28, 2022<\/p>\n<p>Some of them, however, remain clearly excited to see what happens next.<\/p>\n<p>\u201cThe crypto markets on a steady uptrend while the supply shock kicks in. It will only take one bullish event to send this back to all-time highs,\u201d JRNY Crypto argued\u00a0on March 27. <\/p>\n<p>\u201cWatch how crazy things get when the sentiment goes from fear to greed while supply is limited.\u201d<em>Crypto Fear &amp; Greed Index (screenshot). Source: Alternative.me<\/em><\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/buy-pressure-in-bull-market-territory-5-things-to-know-in-bitcoin-this-week\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) begins the last week of March with a bang after returning to its yearly opening price above $46,000. In a surprisingly strong upward move for a weekend, BTC\/USD began surging upwards Saturday, continuing overnight to challenge its highs from the start of 2022. Coming against an ongoing macroclimate of considerable uncertainty, strength in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2939,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-2938","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/2938","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2938"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/2938\/revisions"}],"predecessor-version":[{"id":2940,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/2938\/revisions\/2940"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/2939"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}