Bitcoin (BTC) is on course for its third monthly close in the green this year. However, the current rally will have to face a rather critical obstacle in the long term.
Third month in the green for the queen of cryptos
The cryptocurrency leader by market capitalization has experienced high volatility this month. At the start of the month, it dipped below the $20,000 psychological zone and then rebounded. Currently, bitcoin (BTC) is trading around $28,000 and is poised for a monthly close in the green. BTC has managed to maintain year-to-date bullish momentum despite a slowdown in February. For the month of March, the situation in the banking sector is one of the catalysts for this increase of more than 22%.
As long as the banking crisis persists, the crypto bull run is likely to continue. However, there is a fairly critical hurdle present on the bitcoin (BTC) monthly chart. This is the June 2021 low which is around the psychological level of $30,000. It could be that the price undergoes a correction by bumping into this level. Additionally, the 50% fib level of the 2022 range sits just above this hurdle. If the price breaks through this resistance at $30,000, the bull-run will continue until the next major hurdle: $40,000.
Bitcoin (BTC) heading for another major rise?
On the short-term chart, bullish signals continue to form. Indeed, we can see the break of a symmetrical triangle. After making a false break down, the price rallied over 8% this week. Currently, bitcoin (BTC) is pulling back on the upper part of the triangle around $28,000. After this slight dip, one would expect a fairly significant rise.
A buy position on BTC at $28,000 is then possible. The objective being the 50% level of the 2022 range, visible on a monthly scale. If the price clears this hurdle, bitcoin (BTC) could be expected to rise towards the $40,000 resistance.
Admission: $28,000;
Stop: $27,100;
Goal 1: $31,000;
Goal 2: $40,000.
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