• Bitcoin might be down a small 2% on the week but is still up by almost 20% on the month.
• The cryptocurrency broke above an ascending triangle pattern toward the end of March as it ran into resistance at the 200-day EMA .
• The breakout of the triangle is a strong bullish signal but the 200-day EMA will need to be overcome for the run to continue.

Bitcoin is now up by a total of 20% over the past month of trading after the triangle breakout during the final stretch of March 2022. The cryptocurrency had been trapped in a long period of consolidation since the start of the year. Before that, BTC was in a strong downtrend as it retraced from the November highs.

What has been going on?

Taking a look at the daily chart above, we can clearly see the breakout of the triangle, marked by the dashed lines. Prior to the breakout, BTC was trapped in a period of consolidation as it struggled to make any ground above the resistance at $44,750 (triangle roof & February 2021 support).

The market was rejected at the roof of the triangle in the first few days of March which caused the coin to fall into the lower boundary at around $38,000 toward mid-March. It was here when the bulls kicked into action and started to drive BTC higher in the final half of the month.

The breakout occurred on the 27th of March as BTC surged above $44.750 and continued higher until resistance was met at around $48,000 – provided by the 200-day EMA and a bearish .382 Fib Retracement.

Since then, the market has pulled back slightly from this resistance but is using the support of around $46,000 (.236 Fib) as a potential platform to rebound from this week.

Bitcoin price short-term prediction: BULLISH

Last week’s breakout allowed BTC to finally switch from neutral to bullish after exiting the consolidation phase. The coin would now need to fall back beneath $44,000 to turn neutral. In addition, it would have to continue further beneath the March lows, around $38,000, to be in danger of turning bearish in the short term.

If the bulls manage to push higher, the first level of resistance lies at $48,000. This is significant resistance as the 200-day EMA and a long-term bearish .382 Fib Retracement lies here. Above this, resistance is located at $49,350 (1.272 Fib Extension) and $50,000.

If the buyers continue to break above $50,000, additional resistance lies at $51,180 (1.414 Fib Extension), $52,000 ( bearish .5 Fib Retracement), $53,800 (1.618 Fib Extension), and $56,000 ( bearish .618 Fib Retracement).

Where Is The Support Toward The Downside?

On the other side, the first level of significant support lies at $45,780 (short term .236 Fib). This is followed by strong support at $44,750 (Feb 2021 support & roof of the previous triangle). If the sellers push back into the triangle, added support lies at $44,00, $42,975 (.5 Fib), $42,000 (Jan 2021 highs), and $40,000.

What are the technical indicators showing?

The RSI has pulled back from the overbought conditions that last week’s breakout provided. It is now still in the bulls favor and has room to drive BTC higher before becoming overbought again.

To learn about Bitcoin’s fundamental analysis in addition to TA, click the following link: https://coincodex.com/article/14132/bitcoin-price-analysis-btc-looks-ready-to-continue-bull-run-after-last-weeks-triangle-breakout-can-we-overcome-the-200-day-ema/