The cryptocurrency and equity markets have seen a relatively stable week, as the volatility and volume drained away from both markets. Bitcoin (BTC) has been moving between $6,600 and $7,300 and hasn’t been showing direction. On the other hand, the volume is starting to drop significantly in the markets.
Such a stable movement and compression combined with low volume generally leads to a big move to occur with just 24 days until the Bitcoin halving.
Crypto market daily performance. Source: Coin360
Bitcoin flirting with the 100-Week MA to break
BTC USD 1-week chart. Source: TradingView
The weekly chart of Bitcoin is showing five consecutive green candles in the past weeks. That’s showing strength as the majority of the losses on March 12 or “Black Thursday” have been pared in the recent movements.
But is this sustainable? The chart is also showing something different. First of all, a crucial break and further upwards extension require a clear break through the 100-Week MA. The crash on Black Thursday caused the price of Bitcoin to drop below the 100-Week MA for the first time since the end of 2018.
Next to that, the previous support of the price was found between $6,900 and $7,300, which is currently being tested as resistance. Combined with the 100-Week MA, an apparent breakthrough would indicate further upwards perspectives, potentially leading towards $10,000.
Finally, the recent run-up is losing momentum as the volume is dropping and showing exhaustion. That’s not a strong signal as one would preferably want to see an increase in strength resulting in a massive breakout. An example of such a breakout is what happened in April 2019, which was a push from $4,000 to $5,300.
Daily timeframe still fighting resistance against yearly open
BTC USDT 1-day chart. Source: TradingView
The daily timeframe is fighting the yearly open as resistance alongside with the horizontal resistance area. The yearly open is marked as a substantial level of resistance and is the…