Bitcoin price analysis for March 9-14: the coin could rise to a new all-time high
Bitcoin has broken out of a stiff overhead resistance and it could now retest its all-time high
Citigroup analysts believe that Bitcoin adoption by companies such as Tesla and Mastercard has put it on the path of “massive transformation.” According to the investment bank, Bitcoin may be at a “tipping point” that could either propel it into mainstream adoption and make it the preferred currency for international trade, or it could face “speculative implosion”.
Bitcoin’s resilience after the sharp bull run continues to attract institutional investors. Third Point CEO Daniel S Loeb recently tweeted that he is “doing a deep dive into crypto lately”.
To possibly spearhead its crypto aspirations, the asset management firm recently hired Heath Terry, a managing director of Goldman Sachs’ tech division.
After Tesla, MicroStrategy, and Square, the latest listed company to buy Bitcoin is the Chinese company Meitu. The photo editing app maker acquired $17.9 million worth of Bitcoin and $22.1 million worth of Ether.
Close on its heels, Oslo stock exchange-listed Aker ASA announced the formation of a new company Seetee AS that will keep its entire treasury in Bitcoin. This shows that it is not only the US-based companies that are investing in Bitcoin. The trend has started to spread across the globe.
The demand and supply imbalance may receive another boost if the US Securities and Exchange Commission gives its green signal to the Chicago Board Options Exchange application to list a Bitcoin exchange-traded fund of the VanEck Bitcoin Trust.
Bitcoin’s fundamentals continue to improve, which is likely to be a long-term positive. But will its price react to the positive events in the short-term? Let’s do the Bitcoin price trend analysis of the weekly chart to find out.
Bitcoin price technical analysis: weekly chart
In a strong uptrend, corrections usually are sharp and swift. The aggressive bulls pounce on the dips and try to resume the uptrend. Bitcoin rallied 12.67 per cent to end last week at $50,955.90. This showed strong demand at lower levels.
The bulls will now try to push the price above the $58,341.75 overhead resistance. If they succeed, the BTC/USD pair could start the next leg of the uptrend that could carry it to $72,170.25.
The rising moving averages and the relative strength index (RSI) in the overbought zone suggest advantage to the bulls. Although the RSI has formed a negative divergence, the bearish setup may come into play only if the price breaks the $42,979.50 support.
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If the price turns down from the overhead resistance, the pair may consolidate between $58,341.75 and $42,979.50 for a few days. A break and close below this proposed range could signal a deeper correction to the 20-week EMA and then to $29,151.
The Bitcoin price weekly analysis shows the bulls are attempting to resume the uptrend. Let’s perform the BTC price analysis of the daily chart to see if it also paints a bullish picture.
Bitcoin price technical analysis: daily chart
The bears tried to stall the relief rally on March 4, but the bulls did not allow the price to sustain below the 20-day EMA. This showed strong buying at lower levels. The bulls pushed the price above the overhead resistance today and will now try to retest the all-time high.
The 20-day EMA has started to turn up marginally and the RSI has jumped above 62, suggesting that the bulls are trying to reassert their supremacy.
However, the bulls are unlikely to have it easy because the bears are likely to mount a stiff resistance in the $52,000 to $58,341.75 zone. If the price turns down from the current level and slips back below $52,000, it will suggest that traders are booking profits at higher levels.
A break below the 20-day EMA will be the first sign of weakness. Such a move could pull the price down to the critical support at the 50-day SMA. A break below this support could signal advantage to the bears.
How to trade Bitcoin this week
The short-term traders who went long when the price held the 20-day EMA, as suggested in the previous analysis, could be sitting on profits. Due to the uncertainty, traders may protect their paper profits or keep the stops at breakeven. Traders should avoid letting a profitable position turn into a loss.
Trade Bitcoin to US Dollar - BTC/USD chart
FURTHER READING: Bitcoin explained simply: everything you need to know
FURTHER READING: Bitcoin vs Bitcoin Cash vs Bitcoin SV: the ultimate guide