The queen of cryptos is stagnating around the $28,000 hurdle. The movement of the price at the beginning of the week, however, shows bullish signals. Could bitcoin (BTC) be ready for a rise to a new high?
Will bitcoin (BTC) create a new high?
It is quite likely that the crypto leader by market capitalization will create a new high for the current year. Currently, the value of bitcoin (BTC) is stagnating around $28,000, but further upside may be on the way. The breakout of the March high ($29,200) is then possible. Which is quite likely given the weakening of the dollar following the banking turbulence. Additionally, signs of trend change are beginning to show over the longer term. Bitcoin (BTC) could then create a new high around $30,000. Nevertheless, one can also consider a false breakout.
On the daily scale, the RSI continues to give a bearish signal. The RSI divergence since mid-January means the bulls are losing strength. Given this, a false breakout of the top around $29,200 is on the cards. If so, then a correction below $23,500 could be expected for bitcoin (BTC). Since the macro trend has turned bullish, this correction should be followed by an explosive rise towards the next resistance at $40,000.
A weekly close in the green?
The movement of the price at the beginning of the week shows bullish signals. We could then envisage a weekly closing of bitcoin (BTC) in the green. Thus, a buy position is the most adequate. However, the target would be limited to $30,000, as this resistance could send the price back towards a further correction.
Half of the range on Tuesday could be an ideal entry point for this buy position in bitcoin (BTC). The target is over the top of March. If the price breaks through the low on Monday, this bullish thesis will be invalid as the price could retrace directly towards $23,500.
Admission: $27,961;
Stop: $27,220;
Goal: $30,000.
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