Bitcoin price is proving its resilience as the world’s most popular cryptocurrency surges past the $28,000 level today, gaining 3% in the last 24 hours alone. March saw the start of the anticipated leg of an uptrend that pushed BTC to nine-month highs, leaving experts questioning what’s behind this remarkable run.
Bitcoin Price Draws Highest Weekly Close In Nine Months
At the time of writing, Bitcoin was trading at $28,284, up 27% in the last seven days, data from crypto market tracker Coingecko shows.
Source: Coingecko
Bitcoin had a strong start to the year, with a 41% increase in the first three weeks, but then hit a Fair Value Gap (FVG) and pulled back to balance. This allowed buyers to step in and push Bitcoin to a nine-month high of $27,763.
With Bitcoin’s aggressive momentum, analysts expect the alpha coin to further climb to $29,000.
Overall, Bitcoin’s price movement is influenced by a power struggle between bulls and bears, resulting in periods of sideways movement and pullbacks to rebalance.
While the current position of BTC suggests a possible extension of the rally, investors should also be cautious of bearish signals from momentum indicators, which may indicate a future correction.
Just like previously asked on #Bitcoin, we got the answer now as well.
Are we staying above $26,800? Answer is clear; yes.
This means, trend will continue to last until $26,800 is lost.
Looking for a final sweep into $28,300-28,900 and then reversal. pic.twitter.com/d6lK0CWAjx
— Michaël van de Poppe (@CryptoMichNL) March 18, 2023
A Final Sweep Before Reversal
Despite the slight dip in BTC/USD over the weekend, Michaël van de Poppe, who is the founder and CEO of trading firm Eight, remains hopeful about the short-term future of the cryptocurrency.
Van de Popperend says the trend will continue to last until $26,800 is lost, adding it will go through “a final sweep into $28,300-28,900 and then reversal.“
BTC total market cap at $536 billion on the daily chart at TradingView.com
Selling Pressure
Meanwhile, the collapse of traditional finance banks had a ripple effect on stablecoin platforms, causing initial selling pressure. However, investors may have regained confidence and started investing in Bitcoin, which is comparatively more stable than stablecoins.
This could be the reason for Bitcoin price rally, despite the development of a bearish divergence. If BTC can hold above the $27,000 support level, the sell-side inefficiency could be a buying opportunity, with the next target being the upper limit of $28,500 to $29,000.
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