The world’s largest virtual currency by market cap appears to be on the verge of a breakthrough towards the psychologically significant $30,000 level and possibly on toward the next significant resistance zone around $32,500-$33,000. This is according to technical analysts who are monitoring the BTC market over a short period of time.
After examining the four-hour candlesticks for BTC/USD, a bullish ascending triangular pattern seems to have developed. These technical formations frequently occur before bullish breakouts. Nevertheless, bears beware: between both the 16th and the 21st of February, Bitcoin produced a pattern resembling that, but instead of breaking higher (in the near term at least), it spent the following several weeks pushing lower once more.
Bitcoin Shows Positive Growth
The next probable positive catalyst, according to traders, will be the US Federal Reserve policy conference on Wednesday. Interest rates are anticipated to rise by another 25 basis points (bps) to a range of 4.75 to 5.0%, but there is a chance they may remain unchanged due to worries that the US banking sector may be beginning to show signs of weakness.
Experts have asserted that BTC may profit regardless of the outcome (i.e., hawkish or dovish). A hawkish Fed, on the other hand, might make the bank crisis worse and increase the attraction of BTC as a safe haven; this has been a major positive factor for Bitcoin over the last week. On the other hand, a dovish Fed may lead to an improvement in financial circumstances, which might support Bitcoin (and broader crypto markets).
Although many bulls are optimistic about Bitcoin’s near-term prognosis, it may be prudent to limit expectations for more short-term gains given that several indicators suggest the Bitcoin market has grown extremely hot. The 14-day Relative Strength Index (RSI) score for Bitcoin has changed from oversold to overbought following the recent climb from monthly lows around $20,000 to current levels above $28,000.