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BTCUSD Weekly Outlook and Bitcoin Fundamentals, 25th March 2022

Introduction

Indian brokers have seen how the price of bitcoin broke out above the $40000 level severally this year but have not dominated the zones. The price of bitcoin has been ranging between the $30000 low and the high of $45000. 

Can the long position traders breakout convincingly above the resistance zones or the sellers will keep rejecting the price from the zones? The report indicates that over $20 million Indian brokers in long position got liquidated when the price of bitcoin fell below $41000. If the bullish momentum is sustainable, we may see the price finally breaking above the resistance zones.

BTCUSD Technical Analysis

Monthly Chart

BTCUSD monthly chart - 26th March 2022

Monthly Resistance Levels:  69000, 50000, 46000.

Monthly Support Levels:  43290, 28600, 32950

The support zone of 32950 of the BTCUSD pair rejected the bearish move earlier this year because of the support zone and it is a psychological point for the Bulls with long positions. The Bulls and other Indian brokers who wish to hold on to their investment will desire to see the price of bitcoin close over the 46000 level for the trend to pick up momentum. 

01 July 2021, the Bulls established the support zones when they took the price to a new high, the zone has been tested again as of 01 January 2022, can the Bulls create another new high if they breakout above the wall of resistance to expose the ATH? Time will tell. 

Weekly Chart

BTCUSD weekly chart - 26th March 2022

Weekly Resistance Levels: 67000, 46000, 50000

Weekly Support Levels:  32950, 34324, 

The invasion of the Russian military on Ukraine has made the central banks face a tougher decision in normalizing their monetary policy as most economic activities are recovering from the coronavirus pandemic. An analyst from Goldman Sachs expects the Feds to raise the interest rates by 50 basis points by May and June following the earlier statement made by the chairman.

Analysts from Glassnode see BTCUSD in a bearish state from the weekly time frame as they view it based on the supply and on-chain activity.

The weekly chart shows a bullish momentum from last week’s trading activities in the cryptocurrency market, the week closed engulfing three weeks’ candles on the weekly frame. If the reversal of trend should play out the price of bitcoin may breakout above the resistance zones.

Daily Chart

Daily Resistance Levels:  48000, 45600, 43000

Daily Support Levels:  37200, 36000 

The BTCUSD pair had a bullish run last week from 14 March 2022 from the support zone of 37200 on the daily chart. If the bullish momentum is stronger the rally may continue to go up. If the Indian brokers on long trades can close above the 43000 level, we may see the Bulls dominate the cryptocurrency market giving bitcoin an edge in the digital market.

Some analysts think that the bitcoin is still in a bearish state and we may see some levels of volatility in the market at some zones on the daily time frame. The $45600 zones are key areas for short position traders, they will want to go short from those zones if the buying momentum is lost.

Bullish Scenario:

A breakout above the current resistance zones will favor the buyers. The continuation of the bullish scenario is expected for the week if we get a close above the high of $43000. More Indian brokers and investors will pay attention to the cryptocurrency market because the surge may take BTCUSD to a new high.

Bearish Scenario:

Overall trend on weekly chart remains bearish, price needs to break out below the support zone of 30000 for the price to shift its direction in favor of the short position traders. The bearish scenario may not be visible now until we get the rejection of the price at the resistance zones of 43000.

Bitcoin BTC News Events 

CRYPTOCURRENCY EXCHANGES FOR MARCH.

The Glassnode analyst released a report for March relating to cryptocurrency exchanges. From the report, it was observed that about $2.6 billion worth of BTCUSD left cryptocurrency exchanges because traders, investors, and Indian brokers have moved an estimated 61,000 BTC from the trading exchange platforms into their private wallets or they have swapped the cryptos for fiat currency.

This could result from a decline of investors’ confidence in exchanges either centralized or decentralized exchanges, also to avoid being a victim of hackers breaking into individual accounts, however, it may not be the main reason for the large outflow of funds.

Due to the regulation coming up on cryptocurrency exchanges, the CEO of Kraken Exchange must have contributed to the withdrawer of the fund when he warned users to withdraw their funds into private wallets because of the uncertainty concerning the regulation. Different countries have different regulatory rules which exchanges must comply with. 

Most cryptocurrency exchanges use a high level of technology to protect their customer’s wallets and store the private keys of users’ wallets on their database which are often attacked by hackers. However, investors and traders have switched to other ways of making money in the cryptocurrency industry like liquidity farming, staking among other means.

Conclusion and Projection

The cryptocurrency market is building a bullish momentum as we saw a bullish close on the previous week’s candle. If the Bulls can take over the high of 43000 zones, we expect the price of BTCUSD to rise higher during the week.



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