Bitcoin Breaks Above $46K, Resistance at $48K-$51K
Momentum turned positive for the first time since July, although a significant price rally could be delayed.
Mar 28, 2022 at 5:58 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/PEOEXDLOZJDZ7CEGCRPU3DGCJI.png)
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Bitcoin (BTC) buying activity accelerated over the weekend as momentum signals turned positive.
The cryptocurrency broke above initial resistance at $46,000, although stronger resistance at the 200-day moving average, which is now at $48,289, could stall the relief rally.
BTC was trading at around $47,500 at press time and is up 5% over the past 24 hours.
The relative strength index (RSI) on the daily chart is approaching overbought territory, similar to what occurred last October, which preceded a sell-off. This time, however, buyers appear to be targeting a 50% reversal of the four-month-long downtrend, which would yield additional upside toward $50,966.
Momentum signals on the weekly chart have significantly improved, which was previously seen at around the July low of $29,400. Still, momentum remains negative on the monthly chart, which could delay a significant price rally in the short term.
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Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.