Bitcoin (Bitcoin) saw a fresh surge to near $45,000 overnight to March 27, when the weekend was set to bring a decisively bullish close.
Weekend closing of central importance
Although the pair was still within its extended trading range, capped at $46,000, the pair was still firmly on the radar of long-term traders as the weekly close neared what could likely be Bitcoin’s highest level so far this year.
Popular trader and analyst Rekt Capital added that Bitcoin’s 21-week exponential moving average (EMA) also stands as resistance for a reversal — something that has served bulls well in 2021.
— Rekt Capital (@rektcapital) March 26, 2022
However, some were not convinced of the strength of the current levels. Among them was fellow trader and analyst Crypto Ed, who warned that buying into the long-term resistance near the $46,000 annual open makes little sense from a risk-reward standpoint.
Try to convince me that spot buying in resistance is a bad idea here.
You will not succeed with this kind of R:R.
You could get a slightly lower entry, but you could also miss a brutal breakout and never get your retest.
The maximum risk is 1R
The reward is 4.9 R pic.twitter.com/E7wo0MC0pB
— Ed_NL (@Crypto_Ed_NL) March 26, 2022
As Cointelegraph reportedothers had already argued that a more significant trend breakout was needed for bitcoin to turn bullish and take long positions overall.
Spot demand calms market observers
Meanwhile, an on-chain research revealed that spot markets, not derivatives, have been at the top for the past week.
That’s inherently optimistic, Glassnode co-founders Yann Allemann and Jan Happel argued on Twitter this weekend, given that spot demand has historically driven sustained upsides.
— (@Negentropical_) March 26, 2022
Derivatives themselves, however, gave little cause for concern, since subsidy rates remained neutral to negative despite pushing towards the top of Bitcoin’s trading range.
https://cointelegraph.com/news/bitcoin-on-track-to-see-its-highest-weekly-close-of-2022 Bitcoin is on track for its highest weekly close in 2022