Bitcoin (BTC) Floats Higher, Registering New Q1 2023 Highs above $24k
Bitcoin is in a bullish breakout formation, printing higher as BTC shake off bears. The coin may rally to $28.5k in a continuation pattern.
Per the performance in the daily chart, Bitcoin is up roughly 15 percent in four days. Overall, the path of least resistance remains northwards as the coin soars above current liquidation levels.
With BTC above February highs, in a bullish breakout pattern, and trading at August 2022 highs, it is evident that the flow favors buyers. Even so, for the uptrend to be sustained and the coin bottom from 2022 lows, it must stay above February highs and support at $23.5k.
Most importantly, the leg up should be with expanding volumes, indicating interest from traders across the board. If not, the uptrend can be quickly reversed as traders take profit, weakening the upside momentum.
Institutions rotating funds into Bitcoin
The surge of February 15 was meaningful. Not only did BTC power above February highs and force the coin to new Q1 2023 highs, but the bar was wide-ranging. The bullish engulfing bar saw BTC gain over $2k in a single thrust, a solid endorsement for buyers. From price action, the last time BTC expanded with this speed was when prices were trending at around the $48k range in early March 2022.
Interest in Bitcoin, which forced prices higher, on-chain data shows, was due to whale activity. Institutions appear to be rotating from stablecoins such as USDC and BUSD to established cryptocurrencies, of which BTC stands out. This deluge is subsequently powering BTC and could sustain the coin at spot levels or push it to higher levels in the coming days.
Bitcoin Price Analysis
Bitcoin is back to green, trading above critical lines as the shift favors buyers. From the daily chart, traders can find entries above $23.5k and, ideally, February highs. However, prices must continue edging higher, syncing with the gains of February 15 and reversing yesterday’s losses. Should today’s close be higher, then it is highly that BTC may not only comprehensively break above $25k but also surge towards May 2022 lows at around $28.5k, in a welcomed retest. This will validate the breakout of February 15 and confirm the bull trend set in motion from mid-January 2023.
Technical charts courtesy of Trading View. Disclaimer: Opinions expressed are not investment advice. Do your research.
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