Bitcoin has made massive gains in the past week, and many are excited. The coin is currently trading at $28,027 on Tuesday, a gain of 14% in the past 7 days. Ethereum has notched up to $1,761, while Binance Coin is exchanging hands at $335. On the 7-day chart, ETH and BNB have gained 5% and 9%, respectively.
Over the past week, not just the most capitalized coins have been in green. Ripple is up 5%, Solana is up 10%, Avalanche is up 3%, Wrapped Bitcoin is up 14%, and Chainlink is up 5%.However, it is a mixed bag, as several of the top-cap coins have not made remarkable gains. For instance, Polkadot, Shiba Inu, and Tron have either made little or no gain in the past week or are actually in the red. The same is applicable to DAI, Litecoin, and Filecoin.
A bullish market?
With the mixed signals, in what direction is the coin market headed, even as Bitcoin seems to be bullish?
On the 4-hour chart, BTC is showing signs of a bullish upswing, and with the RSI indicator registering 63, there is no doubt that we shall see higher prices in the next few days since the coin is not yet overbought. This is the short-term view. However, it is important that we keep things in proper perspective. The year-to-date chart is equally impressive, yet it may not show the full picture. The five-year chart shows that the $30k-$36k resistance is the critical region that determines if BTC will enter the bullish range or drop back to struggle.
The bear market is officially over. $BTC made it’s first higher high ($25,212) since the all time high . That confirms a new bullish trend. Price can still go down, but that would be a new trend, not a continuation of the previous bear market. Congrats everyone. pic.twitter.com/Y4Mzl906s5— The Wolf Of All Streets (@scottmelker) March 19, 2023
Primed for the peak range?
The last three months are green, said Alan Santana. There are no periods of three consecutive months closing in the green within the entire bear market after Bitcoin peaked in April 2021. The orthodox end of the bull market happened in April 2021, and the bounce that happened between May 2021 and November 2021 is what people commonly refer to as a “dead cat bounce”.
So what is the implication of all this? Let’s just say that all eyes are on the $30k resistance. If the BTC price breaks it, we can safely believe that the market has crossed the most crucial test that determines if it goes up or down.