4 signs that the price of Bitcoin may rise to $ 26 thousand at the present time

Bitcoin (BTC) received a big boost this week as inflation levels in the US for the month of February were in line with market expectations. On March 14, the BTC/USD pair rose to its 2023 peak of $26,550 after the news.

But, while macroeconomic conditions may favor risk-averse buyers for the time being, some stock and market indicators point to the possibility of a correction in the near term.

BTC is flowing back to the exchanges as the price rises

On March 13, Glassnode’s exchange flow data recorded the most significant inflows to exchanges since May 2022. This means more supply on the exchanges and possibly higher selling pressure.

The Destroyed Coin Days Index, which measures time-weighted Bitcoin conversions, is showing a slight uptick, indicating that old hands are moving the coins around. Indicators may point to profit-taking by long-term holders, which could lead to a correction.

Bitcoin exchange net flow volume. Source: Glassnode

Bitcoin funding rates, RSI jump

Moreover, the funding rate for bitcoin perpetual swaps is also high with the latest CPI printing. In other words, more traders are betting on the upside with leveraged positions, which increases the risk of a correction.

Funding rate for bitcoin perpetual contracts. Source: Coinglass

The sharp price action also posted a significant rally in the Relative Strength Index (RSI), a technical momentum indicator, with a reading of 82. This means that BTC/USD is generally considered to be “overbought” in the short term.

Bitcoin vs. the US Dollar is charting a bearish pattern

BTC price is currently forming an expanding wedge pattern, which depicts the high level of volatility. Both buyers and sellers push the price beyond support and resistance levels, with reversals happening quickly.

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BTC/USD price chart over 4 hours. Source: TradingView

Buyers failed to make a breach of the pattern on March 14 and are now facing resistance at the $26,700 ceiling. At the same time, there is a possibility that the price will correct again towards the bottom of the pattern, around $19,500, in the coming days.

Conversely, if bitcoin price breaks above the upper trend line, the bulls are likely to accumulate to push the price towards $30,000. There are likely to be welcome signs for the bulls that this could happen – namely in the BTC options and futures markets.

As Cointelegraph reported, there is still room to run, as the index has not yet reached its previous peak levels.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.

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