BTC price activity is solidly ahead of every previous week this year, with seven-day gains reaching 9%. Bitcoin (BTC) surged to nearly $45,000 overnight on March 27, indicating that the weekend would be a strong bullish finish. Close of major importance every week
After a rejection at just above the $45,000 barrier, data showed BTC/USD grinding back to higher levels reached days before.
As the weekly close approached, the pair stayed firmly on the radar of long-term traders while remaining inside its extended trading range, which has a ceiling of $46,000, which should be Bitcoin’s highest level of the year so far. According to Rekt Capital, a prominent trader, and analyst, Bitcoin’s 21-week exponential moving average (EMA), which has historically served bulls well in 2021, was also set to function as resistance.
How Certain Are We?
Several critics, however, questioned the strength of the current levels. Ed, a fellow trader and analyst warned that buying into long-term resistance at the $46,000 yearly open was a poor risk/reward proposition. Others have earlier suggested that they needed a more significant trend break to become overall bullish and take long positions in Bitcoin.
Meanwhile, on-chain data revealed that spot markets, rather than derivatives, drove the market this week. Glassnode co-founders Yann Allemann and Jan Happel said on Twitter last weekend that this was optimistic in and of itself because the steady rise has historically been driven by spot demand.
Despite the rise at the top of Bitcoin’s trading range, derivatives were relatively unaffected since financing rates remained neutral to negative.