Bitcoin price is looking at a technical breakout from a rising parallel channel pattern as institutional demand returns to the bellwether asset.
Conclusion
- Bitcoin price is trading in a continuation high pattern, which points to more upside in the coming sessions.
- Bitcoin ETFs hit a weekly low for the first time in 5 months.
According to crypto.news, the price of Bitcoin (BTC) is up 4.2% in the last 24 hours, trading at $70,197 at press time. Now, the charts suggest that Bitcoin may see further recovery in the coming sessions.
On the daily chart, the price of Bitcoin has formed a rising parallel channel pattern after its sharp decline in early February. A common bullish continuation pattern indicates sustained gains as long as the asset price remains within the two trend lines that define the corridor.
Furthermore, a breakout from the upper side of the channel tends to accelerate the rate of rise of the related asset.
At the time of writing, technical indicators seemed to indicate that Bitcoin price was on the verge of such a breakout from the pattern. The 20-day and 50-day moving averages are approaching a bullish crossover, while the Supertrend turned green as BTC price broke above it.
Thus, $73,226, which is in line with the 50-day SMA, is a key immediate resistance level that traders are paying close attention to. A sharp pullback from it could push the price up to around $86,500, a level that previously served as a key support area throughout January of this year.
Conversely, if the price of Bitcoin breaks below $67,674, the 20-day SMA, the bullish forecast will be invalidated. Bears can then push the price of BTC back to the key psychological support level of $65,000.
The main catalyst supporting Bitcoin’s recent recovery is increased demand for the asset from institutional investors.
According to data from SoSoValue, 12 Bitcoin ETFs have recorded net inflows of more than $1.35 billion over the past two weeks. This is the first time that these investment products have been able to contain weekly inflows since the beginning of October last year. In addition, March also marked the first positive month for these funds after four consecutive months of bleeding.
Meanwhile, companies like Strategy also played a key role in supporting the price action. In its latest filing, the company noted that it bought $1.28 billion worth of BTC, bringing its total holdings to $56.04 billion.
Disclosure: This article does not provide investment advice. The content and materials on this page are for educational purposes only.
