Yesterday, BTC/USD rose above the $75k level, thereby setting a new high for March. The last time Bitcoin traded at such levels was in early February.
Why is Bitcoin Rising?
Bitcoin’s appeal appears to be increasing due to a combination of factors, including:
- → ongoing military conflict in the Middle East;
- → expectations of rising inflation and upcoming Federal Reserve decisions on interest rates.
According to on-chain data, March has seen capital inflows into spot Bitcoin ETFs. At the same time, media reports indicate that major corporate players (notably MicroStrategy) have purchased approximately $1.57 billion worth of Bitcoin, creating strong organic demand.
Technical Analysis of BTC/USD
On 5 March, when analysing Bitcoin’s price movements within a broad descending channel, we:
- → noted that the bullish impulse at the beginning of March led to a breakout above the QL resistance line, as well as the psychological $70k level;
- → highlighted that the median line M could act as a barrier to further gains;
- → suggested a potential pullback scenario.
Indeed, since then (as shown by the red trajectory), Bitcoin has undergone a fairly deep correction, reversing lower from the M line. Notably, the QL line subsequently acted as support.
Trading volume analysis (based on Coinbase data) shows that:
- → on 13 March, bearish activity intensified, resulting in a long upper wick on a high-volume candle;
- → on 15–16 March, the price advanced alongside rising volumes, with candles closing near their highs.
This can be interpreted as strengthening demand: buyers are pushing sellers out of the $70–72k zone, which may serve as support in the near term.
Given the above, a continued upside scenario cannot be ruled out, in which Bitcoin maintains an upward trajectory within the blue channel.
FXOpen offers the world’s most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service (additional fees may apply). Open your trading account now or learn more about crypto CFD trading with FXOpen.
*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
