BTC price extended its rally on Wednesday by 7.38%, following on Tuesday’s gain of 2.87%. BTC price spiked to the upper part of bullish channel at an intraday high of $57377.52 at the close of the trading session.
Yesterday, following a massive recovery from the drop below the $53055.28 level, Bitcoin made a retracement to hit $54234.57 on a minor resistance on the 4-hour chart.
The bulls gained momentum and pushed BTC price to $57,377.52 at the close of the daily session.
However, while BTC’s price performance worth noting, what might have been missed is the fact that the 1-day moving average for Bitcoin’s amount of supply in the past two to three years fell to a 14-month low of 1.9 million. Bitcoin futures contract are close to Options expiration, volatility can be anticipated to increase. A climb in demand in institutional investment inflows and increasing Open Interest can also be expected to have a positive impact on the BTC price.
The RSI curve shows a rising trend, which is an early signal for a possible trend continuation upwards. Bitcoin shows strong development within a rising trend channel in the medium and long term.
At press time, BTC price was pulled back to retest $55,639.08 support. On the day ahead, if the bulls break $57,997.68 resistance that was created on 21st February, the bulls will further extend the rally to new record high of 65k. On the contrary, if the bulls fail to break the anticipated level, BTC price could retrace back to $53,326.89 major support.
Yesterday, it was a strong bearish start of YFI, as the bears broke a range bound of $40,027.52 and $38,468.16. This bearish pressure was increasing due to low volume on the intraday as the bulls attempted to break out of a $40,027.52.
This weakness of the bulls ushered the bears into the crypto pair, which resulted to YFI slipped to a low of $36,778.43 in the early morning of the Asian session.
The pull-back from a high of $42,055.20 was meant create a market structure of cup and handle pattern. Taking a look at the 4-hour chart, we could see $36,778.43 handle have been created.
We also notice the weakness of the bears at this level as the buying pressure prevented further dip of YFI price despite the several wicks that were created on the intraday low of $36,170.12. This rejections wicks at press time are sign of buy back of the crypto asset.
Key zone to watch out for on the day ahead will be a $36,170.12 neckline of the cup and handle pattern and also a support of $36,848.78.
If the bulls gain broader market support, YFI could possibly break $36,848.78 resistance. This will launch the underlying asset to the upside. Traders can take a buy position upon confirmation for possible target of $46,488.44.
On 3rd and of March, UNI price created a double top market formation. This was a bearish signal. This instigated bearish pressure and caused a fall on UNI price, losing out to the $31.8-support as momentum moved towards the downside.
The same was evident on the Awesome Oscillator after it formed a series of consecutive red bars. However, the RSI pointed sharply downwards to the over-sold region. This suggested that UNI price’s correctional phase was coming to a close.
The trading volumes were below the $1 billion mark and were not yet supportive of a price swing over the next few sessions.
More dips could be expected at $29.3476 price level. On the day ahead, we can expect UNI price moving forward. The bulls will need to defend the price level to confirm the correction from the all-time high of $34.8147 is over. If this is successful, traders can accumulate the crypto asset at this said level to a probable target of the all-time high.
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