Bitcoin weekly forecast : correction looming as sell signals increase
Investors are optimistic about the crypto markets with Grayscale ETF outflows stabilizing, but the short-term trend for Bitcoin looks bearish based on technical analysis. The Momentum Reversal Indicator shows a warning signal with a downward yellow arrow indicating a potential drop over the next one to four weeks.
This could still spell opportunity for some bitcoin enthusiasts and some long term holders who would be looking to accumulate more bitcoin at a cheaper price. A good buying range is between $53,120 and $59,111, but extreme selling pressure could push the Bitcoin price to the $45,156 support level, though this outcome is considered unlikely.
The flow data for the Bitcoin ETF has been delayed, making it a lagging indicator. On March 18, there was a net outflow of $154 million, which then increased to the largest net outflow of -$326 million on March 19. If the outflows continue to dominate, the current Bitcoin price bounce could lead to a significant correction.
The BTC price bounce hints at a potential new all-time high. The daily chart indicates that the bullish trend for Bitcoin remains strong. Even though BTC nearly retested the $59,111 to $53,120 weekly price range, it did not succeed.
Nonetheless, a reversal seems unlikely given the current bullish market conditions. The Relative Strength Index rebounding from the '50' level also supports this potential rally towards a new all-time high of $73,949.
This suggests that the bullish trend may continue, with a possible sell-off or profit-taking around $74,000 or the psychological level of $75,000 signaling caution for investors.
