BITCOIN – WEEKLY TECHNICAL ANALYSIS -3/20/23
Bitcoin has seen a continued rise out of the latter half of the week last week, seeing the break through the $28,000 region Sunday afternoon. Many would like to suggest that this comes at a time when the masses are losing trust in the financial sector, and fleeing to Bitcoin as a means to hedge their assets.
At this infliction point, BTC has seen itself fight against the .236 Fibonacci retracement on the longer and drawn out retracement, beating all short term ones that were in place with the shorter term action. BTC has now come to a critical crosshair, being subjected to the $28,400 region. Many feel this could create a downturn as the price of Bitcoin since March 10th, has seen a 45% increase, noting that that is only within the span of 10 days.
WORRY STRIKES AS INFLOW V.S. OUTFLOW IS GREATLY DISPROPORTIONATE
CoinShares shows a stark difference between inflow and outflow from exchanges in the past week on BTC and ETH especially.
Digital assets saw outflows of about $32M last week. This is the largest amount of outflow in the last 4 months.
Bitcoin bore the brunt of the negative sentiment, seeing nearly $25M of outflows, while short-bitcoin investment products saw inflows of US$3.7M.
Blockchain equities saw inflows totaling $9.6M last week and have seen 6 consecutive weeks of inflows.
James Butterfill, https://blog.coinshares.com/volume-119-digital-asset-fund-flows-weekly-report-f530d9a019bb
THE WEEK AHEAD AND WHAT TO EXPECT
Bitcoin is looking for a continued break to the upside following positive sentiment coming from the crypto community.
Currently, a flag is forming for a potential break to the upside, nearing the $29,298-$30,000 mark. Zooming in close, $28,471 at the .236 Fibonacci level is a heavy resistance that could prove difficult if the US Federal Reserve does more than a 25 basis point rise on Wednesday.
This week is to be volatile, as that is a known factor in the coming days leading to a Federal Reserve interest rate hike meeting. Bitcoin is looking for a break to the $29,298 mark at the current short and long term Fibonacci levels. If Bitcoin can break through with conviction, expect $30,477 as the next resistance to be met.
If Bitcoin is to reject from this level, a $27,100 could be a wick down as that is the 100 day moving average on the 1 hour, and $27,232 holds as support following the current Fibonacci. $26,500 holds the current sentiment low for a bullish retracement if it does show up for investors.
