bitcoin (BTC) saw a further rise to near $45,000 overnight on March 27, as the weekend looked set to deliver a decidedly bullish close.
Key Weekly Closing
Data of Markets Cointelegraph Pro and TradingView showed BTC/USD returning to higher levels seen days earlier after a rejection just above the $45,000 mark.
While still inside its extended trading range with $46,000 as the top, the pair was still firmly on long-term traders' radar as the weekly close approached, which could be Bitcoin's all-time high. so far this year.
Popular trader and analyst Rekt Capital added that Bitcoin's 21-week exponential moving average (EMA) was also in line for a turn as resistance, something that had served the bulls well in 2021.
#BTC is positioning itself well for a breakout weekly close past a key bull market EMA (21-week EMA)$BTC #crypto #bitcoin pic.twitter.com/HmmfCkOxiP
โ RektCapital (@rektcapital) March 26, 2022
However, some were not convinced of the strength of current levels. Among them was Crypto trader and analyst Ed, who warned that buying long-term resistance near the $46,000 yearly open made little sense in terms of risk/reward.
Try to convince me, point buying resistance here is a bad idea.
You will not succeed with this type of R:R.You might get a slightly lower entry, but you might also miss a brutal breakout and never retest.
The maximum risk is 1R
The reward is 4.9R pic.twitter.com/E7wo0MC0pBโ Ed_NL (@Crypto_Ed_NL) March 26, 2022
Like Cointelegraph reportedothers had already argued that a more significant trend break was necessary for Bitcoin to return to being bullish in general and take long positions.
Spot demand reassures market watchers
Meanwhile, on-chain research revealed that it was spot markets, not derivatives, that were in command over the past week.
Related: ProShares ETF Bitcoin Stash Hits $1.27 Billion as BTC Targets $50K in Mid-April
This was bullish in itself, Glassnode co-founders Yann Allemann and Jan Happel argued on Twitter this weekend, as historically, the sustained rally had been driven by spot demand.
It appears that the move to $44k was led by demand for spot. every sharp #BTC bullish movement is led by the cash market. pic.twitter.com/b72KYwZVLr
โ (@Negentropic_) March 26, 2022
However, the derivatives themselves provided little cause for concern, as financing rates remained neutral to negative despite the advance towards the top of Bitcoin's trading range.
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