BTC pushed through a key price level as investor sentiment soars across the sector, but analysts caution that $44,000 must become support to mark a macro-level trend change.
Morale across the cryptocurrency ecosystem is rising on March 24 as several days of positive moves have helped lift Bitcoin (BTC) back above $44,000 and Ether bulls took control at $3,100.
The climbing price of BTC comes amidst a backdrop of surging inflation and rising interest rates which could see up to seven hikes over the course of 2022 according to Minneapolis Federal Reserve President Neel Kashkari.
Data from Cointelegraph Markets Pro and TradingView shows that after trading near $43,000 throughout the morning session on Thursday, a midday spike lifted the price of BTC to an intraday high at $44,186 where it bumped up against a major resistance zone.
Bitcoin needs to flip $44,000 into support
A look at the weekly chart shows that “Bitcoin is breaking out from the weekly ascending triangle” according to market analyst and pseudonymous Twitter user ‘Rekt Capital’, who posted the following chart outlining the formation that has been developing over the past few months.
While the quick move up has many proclaiming a return of bull market conditions, Rekt Capital warned that “for BTC to confirm this breakout,” it “needs to flip the ascending triangle top into support (e.g. via a 1-week close).”
Rekt Capital said,
“Upside wicks beyond this Ascending Triangle top have happened before (orange circles)”
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The significance of the resistance BTC now faces was also touched upon by crypto trader and pseudonymous Twitter user ‘Sheldon the Sniper’, who posted the following chart highlighting the zone from $44,000 to $46,000.
The trader said,
“$44,000-$46,000 is a very important zone for bulls to break. I expect a short-term pullback in this zone but a break of this zone in the next few days. Market definitely showing good strength.”
The overall cryptocurrency market cap now stands at $1.997 trillion and Bitcoin’s dominance rate is 41.8%.
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