Current analysis shows that the Bitcoin price rally will be limited at $26,000 for now. The bulls face bearish on-chain activity and tough levels of technical resistance. Even with some key metrics pointing to $30,000, the indicators point to a potential correction in BTC in the short term…
Bitcoin returns to exchanges as price rises
On March 13, Glassnode’s currency flow data recorded the most significant inflow to exchanges since May 2022. This metric means more supply and potentially higher selling pressure on exchanges.
The CDD indicator, which measures Bitcoin’s time-weighted transfers, also shows a small increase, showing that old hands are moving coins. Indicators can signal profit booking by long-term investors, which could lead to a correction.
Bitcoin funding rates, RSI bounce
In addition, the funding rate for Bitcoin Perpetual Futures has also been raised with the latest US CPI pressure. In other words, more traders are taking an upside position in leveraged trades, which increases the risk of a correction.
The sharp price action also marked a significant increase in the RSI, which is a technical momentum indicator, reaching as high as 82. This means that the BTC/USD pair is generally considered “overbought” in the short term.
BTC and USD showing a bearish trend
BTC price is currently forming an expanding wedge formation, which indicates an increased level of volatility. Both buyers and sellers push the price above the support and resistance levels and reversals are coming quickly.
Buyers failed to organize a pattern break on March 14 and are currently facing resistance at the $26,700 ceiling. At the same time, there is a chance for the price to correct towards the bottom of the pattern, around $19,500, in the coming days. On the contrary, if Bitcoin’s price rises above the top trendline, the bulls will likely push the price towards $30,000. BTC options and futures markets support BTC bulls in this direction.
How much are institutional investors supporting the BTC rally?
Crypto investment products recorded the biggest weekly outflows last week, according to a new report by CoinShares. According to the report, BTC recorded a total outflow of $244 million last week, representing 95% of all coins removed from the industry. As Kriptokoin.com, we have included the details of the report in this article.
However, it is worth noting that the aforementioned report does not take into account the price performance of Bitcoin and, by extension, the rest of the crypto market over the last 24 hours. At the time of writing, BTC is trading above $24,000 despite the day’s 5% drop. Institutional interest may change direction after the Fed rate decision on March 22.
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