The price of Bitcoin has surged for eight consecutive days, a rare occurrence that indicates a strengthening momentum in the market. The price peaked near $76,000, driven by a significant increase in trading volume from $22 billion to over $56 billion. Despite this promising move, Bitcoin continues to trade below the crucial resistance levels of $93,000 and $98,000, represented by the 50-day and 200-day moving averages.
Currently, Bitcoin is only 15% above the key support level of $60,000, with major resistance levels still more than 30% away. Until Bitcoin breaks above this range, the overall market structure remains fragile, with a potential risk of a pullback towards $60,000.
Top Factors That Could Impact Bitcoin Price This Week
The recent bullish momentum and the price reaching $76,000 have raised expectations for a sustained uptrend. Here are the top 4 catalysts that could influence Bitcoin’s price movement this week:
- FOMC Decision (March 18-19): The Federal Reserve’s decision is anticipated to have a major impact on the market, with a focus on Fed Chair Jerome Powell’s stance. Any hints of a hawkish approach due to inflation concerns could trigger a significant market reaction.
- Quadruple Witching (March 20): The simultaneous expiry of various derivatives could lead to a surge in trading activity and volatility as market participants close out their positions.
- Quarterly Bitcoin Options and CME Futures Expiry: The expiration of Bitcoin options and futures contracts could lead to increased market volatility, especially around the $74K-$75K price range.
- Basel 3 Vote: The outcome of the Basel 3 vote could impact the regulatory environment for Bitcoin and potentially open up new opportunities for institutional investment.
Additionally, the escalating oil prices and geopolitical tensions could further influence market sentiment and Bitcoin’s price trajectory.
Overall, two scenarios are possible: a sustained move above $75,000 could pave the way for a push towards $80,000 and potentially a recovery to $95,000-$98,000. Conversely, a failure to break above $75,000 may result in a retracement towards $70,000, signaling a bearish trend.
What’s Next for Bitcoin Price?
Bitcoin’s recent price action suggests a recovery from the lows near $60,000, forming an ascending channel pattern. The price is approaching the $74,000-$75,000 resistance zone, but the lack of strong volume expansion raises concerns about the sustainability of the rally. If Bitcoin fails to break above $75,000, a retest of the $60,000 support level could be on the horizon.
This potential scenario could lead to a further decline towards $50,000 or lower, reflecting the broader downtrend in Bitcoin’s price chart.
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