As the month of April gets ready to start, a shift in sentiment may be starting to gain momentum as Bitcoin tests crucial resistance levels.
BTC/USD is trading above the 47,400.00 mark as of this writing and is challenging value it has not experienced in a sustained manner since the end of December 2021. Bitcoin has certainly suffered from a long bearish trend and on the 7th of March BTC/USD was trading near 36,950.00. On the 13th of March, BTC/USD touched the 37,500.00 mark as it sunk to this value after hitting the 42,415.00 level on the 9th of March.
It also needs to be noted on the 2nd of March BTC/USD raced to a high of nearly 45,100.00 before stumbling. Skeptical traders of the positive price action in BTC/USD achieved since the 13th of March, may look at the value of Bitcoin currently and remain unconvinced that it will continue to climb higher. Speculative bears may try to search for reversals lower based on the notion BTC/USD is not fully free from the clutches of its long term bearish trend quite yet.
However, the recent price action demonstrated in BTC/USD and other major cryptocurrencies are beginning to look like a shift in sentiment is underway. Certainly traders have had a right to be nervous and pursue downward price action the past five months of trading, but betting against the developing trend upwards may prove to be a costly experience. Technical traders who have experience in BTC/USD probably have battle scars they have suffered on occasion when speculating on Bitcoin as its trends, trying to find lows and highs. Catching the beginning of trend is not easy, but in reality it doesn’t always matter either.
If the current change of direction in BTC/USD is able to sustain, and the price of the world’s most famous digital asset holds its price near term above the 47,000.00 juncture, this may create calm among speculators. The trend may continue higher. After a two week move upwards it would actually be good to see BTC/USD consolidate perhaps at its current levels. Intriguingly BTC/USD has seen very few violent spikes upwards as it has begun to make resistance look vulnerable. On the 27th of March BTC/USD did jump quickly to the 46,800.00 vicinity after it was able to puncture resistance near 45.500.00, but the move was not earth shattering.
Speculative price range for BTC/USD is 38,650.00 to 55,800.00.
Traders looking for downside momentum to re-emerge should be careful. If BTC/USD were to suddenly sink below the 46,000.00 mark and then re-test the 45,000.00 to 44,000.00 levels this may be concerning for speculators betting on upside. However as long as BTC/USD can prove it can maintain prices above the 43,000.00 juncture this may be interpreted positively. Any move below 42,000.00 may spark nervous sentiment again and bearish traders may believe the 39,900.00 could become a target once again. Certainly, if BTC/USD were to suddenly break below its mid- March prices of 38,000.00, this would be a troubling indicator.
The recently ability of BTC/USD to incrementally move higher and come within sight of important resistance is important. If speculative sentiment continues to turn bullish, BTC/USD could easily begin to challenge the 48,500.00 to 49,500.00 values. If BTC/USD were to push through 50,000.00 this could trigger additional bets on higher momentum. If BTC/USD is able to break above the 53,000.00 level and actually topple December 2021 highs, speculative traders may believe November prices may begin to be flirted with sooner rather than later. However, traders need to keep a perspective regarding their timeframes and ambitions. There is a vast difference between day trading, and being able to hold onto a position for a few weeks. Traders need to understand the tactics they must use to avoid high transaction fees is a key element to achieve success.