Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- Bitcoin made a new high recently.
- The bulls were adamant despite lingering sell pressure.
Bitcoin [BTC] retested the $26K price level twice within a week. Investors partly fueled the retest, seeking alternatives following the U.S. bank run and declining faith in the traditional banking system.
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At press time, BTC’s value was $27.30K, hovering around its June 2022 price level. Similarly, the move comes after First Republic Bank faced more trouble highlighting uneasiness in the U.S. banking sector. Could BTC’s rally be a flight for safety for investors hedging against the U.S. financial instability?
A new high – Is it high enough to prevent a fall?
BTC broke below the $25K amidst increased market uncertainty made worse by the U.S. bank run. But BTC bounced back from $20K and cleared the hurdle at $22K.
The king coin was temporarily confined within the $23.98K – $25.07K range and broke above it last week (March 14), making a new high of $26.39K after assurance from U.S. regulators that depositors of troubled banks would be made whole.
At press time, BTC hit the $26K zone and closed above it, setting it for a new high in the $27K area. If bulls defend the new support at $27,208, BTC could retest $27,757 or increase to $28.17K. Other key resistance levels are at $28.65K and $29.51K.
Alternatively, short-sellers could gain leverage if BTC closes below $27.21K. But bears must clear the hurdle at $26.37K and $25.07 to dent the bullish sentiment.
A break below the 26-period EMA ($25.29K) could attract more aggressive selling. However, the drop could likely slow to $23.98K or 200 EMA ($23.06K).
The Relative Strength Index (RSI) retreated to the overbought zone, highlighting increased buying pressure. Similarly, the OBV (On Balance Volume) made new highs, showing genuine demand for BTC.
Sentiment was positive despite increased sell pressure
BTC’s exchange flow balance was highly positive on 17 March, showing more BTCs flowed into exchanges than out, indicating increased selling pressure as BTC retested the previous resistance of $26.37K.
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Similarly, supply on exchanges spiked further, reinforcing the lingering selling pressure on 17 March. But, at the time of writing, the metric declined slightly, and weighted sentiment also improved, reiterating investors’ confidence in BTC despite the lingering selling pressure.