Bitcoin: More Upside or Was That the Top?

·    March 14, 2023

·      March 14, 2023

·    March 14, 2023

Bitcoin took out the $25,200 equal highs on Tuesday but is currently trading below that mark.

So is the mind-bending pump that garnered 35% in five days over, or do BTC bulls have more fuel in the tank?

First and foremost, shorting Bitcoin here is risky.

Anyone who managed to get short near Tuesday’s high has done well, but the market is approaching some key support areas.

Furthermore, Bitcoin loves to fill long wicks, just like the upper wick that’s developing on the daily time frame.

So even if the top is in, we most likely see another run at $25,200 or a bit higher first.

But when I look at the S&P 500, it seems like this crypto rally may have higher to go before we see bulls capitulate.

Last Friday, the SPX closed below the all-time high trend line.

Then on Monday, it closed marginally below the March 2020 channel bottom.

However, S&P bulls managed a daily reclaim of both levels on Tuesday, signaling a potential resumption of risk-on sentiment.

S&P 500 key levels
S&P 500 daily time frame

As for Bitcoin, Tuesday’s pullback is clearing out late longs and potentially flushing the liquidity build-up just above $23,000.

An aggressive bounce from the $23,000-$23,500 area could send BTC back to $25,200.

And a daily close above $25,200 would signal the next leg up toward the $28,000-$30,000 region.

But all of that is contingent on a solid bounce from the mid $23,000 area.

Alternatively, if BTC starts to lose $23,000 on the higher time frames, we could see a more significant pullback to $21,500.

Bitcoin key levels
BTCUSDT 4-hour time frame

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