- The realized price is increasing, signaling that long-term holders (HODLers) remain profitable.
- BTC broke through the $86.8k local resistance on March 24, with bullish momentum persisting despite a minor 2% pullback.
- Key resistance levels to watch are $90.5k and $94.3k, with potential for BTC to push toward $150k-$180k in the long term.
- A liquidity cluster at $88.2k and another between $88.9k and $89.7k could influence short-term price movements.
- Swing traders should monitor the $89k-$89.7k range for potential profit-taking opportunities, as a bearish reversal is possible.
Bitcoin’s Bullish Momentum: A Closer Look
Bitcoin has been riding a wave of bullish momentum over the past week, with its price climbing 6.88% from a low of $81.1k to its current level of $86.6k. This upward movement has reignited optimism among investors, particularly long-term holders, as the realized price continues to rise. The realized price, a metric that reflects the average cost basis of all BTC holders, indicates that most HODLers remain in profit.
This trend is significant because a rising realized price often correlates with sustained bullish sentiment. If this metric continues its upward trajectory, it could pave the way for Bitcoin to target higher price levels, potentially reaching the $150k-$180k range in the long term. However, in the short term, the market remains focused on Bitcoin’s ability to maintain its momentum and break through key resistance levels.
Breaking Resistance: The $86.8k Milestone
On March 24, Bitcoin successfully broke through the $86.8k local resistance, a critical midpoint in its trading range of $79.2k to $94.3k. This breakout was a positive signal for the market, as it demonstrated Bitcoin’s ability to overcome a significant hurdle. However, the move was followed by a minor 2% pullback, a natural occurrence in a volatile market.
Despite this slight retracement, Bitcoin’s price action remains bullish. On the 4-hour chart, the formation of higher highs and higher lows over the past week underscores the strength of the current uptrend. Technical indicators further support this outlook. The Chaikin Money Flow (CMF) registered a bullish reading of +0.16, reflecting strong capital inflows into the market. Meanwhile, the On-Balance Volume (OBV) has been gradually rising, although it has yet to reach the local highs observed earlier in March.
Liquidity Clusters and Key Levels
The 1-week liquidation heatmap reveals critical liquidity zones that could influence Bitcoin’s short-term price movements. On March 24, BTC faced rejection at the $88.2k liquidity cluster, highlighting the significance of this level. Another notable liquidity pocket has formed between $88.9k and $89.7k, just below the psychological $90k mark.
These liquidity zones act as magnets for price action, and their proximity to Bitcoin’s current price suggests that further upward movement is likely. However, traders should remain cautious, as a bearish reversal could occur within the $89k-$89.7k range. For swing traders, this zone presents an opportunity to take profits, especially if Bitcoin struggles to break through the next resistance at $90.5k.
Long-Term Outlook: Path to $150k-$180k
While short-term price movements dominate market discussions, Bitcoin’s long-term potential remains a focal point for investors. If the realized price continues to rise, it could signal a broader shift in market sentiment, paving the way for BTC to target the $150k-$180k range. This scenario would require sustained bullish momentum and the ability to overcome key resistance levels, including $90.5k and $94.3k.
However, the path to these lofty price targets is not without challenges. The market’s current bullish sentiment is contingent on several factors, including capital inflows, liquidity dynamics, and broader macroeconomic conditions. As such, investors should remain vigilant and adapt their strategies to evolving market conditions.
Conclusion
Bitcoin’s recent price action highlights the delicate balance between bullish momentum and market resistance. With a 6.88% weekly gain and a break above the $86.8k resistance, BTC has demonstrated its resilience and potential for further growth. However, liquidity clusters and resistance levels in the $89k-$94.3k range could pose challenges in the short term.
For long-term investors, the rising realized price is a promising sign, suggesting that Bitcoin could eventually target the $150k-$180k range. In the meantime, traders should monitor key levels and liquidity zones to navigate the market’s volatility effectively. As Bitcoin continues its journey, the interplay between bullish momentum and resistance will shape its trajectory in the weeks and months ahead.
