Bitcoin hit a high above $21.4K on Monday but pulled back to $21.0K – the area of the high since November – the rate is frozen, waiting for new signals.
It was apparent yesterday that the market needs a technical correction, or at least a consolidation around one level before it can continue rising after a 30% rally since the beginning of the year.
A technical correction might send the price to $20.2K or, more likely, $19.6K. The 200-day moving average and 61.8% Fibonacci level from the last rally pass near the latter level.
A pullback to this area would be a typical correction.
The emergence of new buyers will signal the end of the bearish trend in crypto. In the event of a more profound plunge, there is a high risk of a new disappointment of early buyers and an imminent return to a down-trend followed by lower lows.
According to Coin Shares, investments in crypto funds rose by $9M last week, with small inflows following three weeks of withdrawals. Bitcoin investments increased by $10M, and Ethereum by $6M. Investments in funds that allow shorts on bitcoin decreased by $1.5M. Among altcoins, Solana recorded the largest inflows of $1.3M; XRP showed the largest outflows at $3.3M.
Bitcoin’s mining difficulty rose last week by 10% to 37.59T, breaking record levels and marking the sharpest rise since October last year.