Investor sentiment improved sharply over the weekend. After a difficult January, Bitcoin was able to win back the losses. As we wrote earlier, to start an upward rally, the price of Bitcoin must hold above $40000. It happened, and today Bitcoin can break through the resistance in the area of 45000.
Some analysts note that we are at the very beginning of a bullish phase. However, the negative scenario cannot be ruled out if the dollar starts to strengthen again after the Fed’s rate hike.
On the chart, Bitcoin has won back all the losses suffered since the end of January and even exceeded the January high. However, to continue the rally, Bitcoin needs to overcome strong resistance in the area of $44,000-45,000. The first attempt to overcome this area was unsuccessful. The BTC/USD pair rose above 44000 and even reached a high of 45501, but met high pressure and retreated. At the time of publication, the BTC/USD pair is trading around 43500.
On the hourly chart, the pair has formed an uptrend line that provides support of around 43300. A break of this level will give the bears a chance to test the support level of 43000.
From another side, holding the pair above 43000 will allow the bulls to prepare for the next jump to overcome the resistance around 44500. A move above the strong 45000 resistance level will reinforce the bullish rally that has begun.