4 signs the Bitcoin price rally could top out at $26K for now

Bitcoin (BTC) received a important boost this week arsenic the U.S. inflation levels for February came on the lines of marketplace expectations. On March 14, the BTC/USD brace surged to a caller 2023 highest astatine $26,550 aft the news.

But portion the macroeconomic conditions mat presently beryllium favoring risk-on buyers, definite on-chain and marketplace indicators hint astatine a imaginable correction successful the adjacent term.

BTC flows backmost to exchanges arsenic terms rises

Glassnode’s speech travel information recorded the largest inflow to exchanges connected March 13 since May 2022. This means much proviso connected exchanges and a perchance higher magnitude of selling pressure.

The Coin Days Destroyed indicator, which measures the time-weighted transfers of Bitcoin, besides shows a tiny spike, indicating that aged hands are moving coins. The indicators mightiness awesome nett booking by semipermanent holders, which tin pb to a correction.

Bitcoin speech netflow volume. Source: glassnode

Bitcoin backing rates, RSI jump

Moreover, the backing complaint for Bitcoin perpetual swaps is present besides elevated with the latest CPI print. In different words, much traders are betting connected upside with leveraged positions, expanding the hazard of a correction.

Funding complaint for Bitcoin perpetual contracts. Source: Coinglass

The crisp terms question has besides recorded a important spike successful the Relative Strength Index (RSI), a method momentum indicator, with a speechmaking of arsenic precocious arsenic 82. This means that BTC/USD is mostly considered "overbought" successful the abbreviated term.

BTC vs. USD coating a bearish pattern

BTC terms is presently forming a broadening wedge pattern, which depicts the heightened level of volatility. Both buyers and sellers are pushing the terms beyond enactment and absorption levels with the reversals coming quickly.

BTC/USD 4-hour terms chart. Source: TradingView

Buyers failed to signifier a signifier breakout connected March 14 and are present facing absorption astatine its ceiling of $26,700 level. At the aforesaid time, determination is simply a accidental that the terms volition close backmost toward the bottommost of the signifier astir $19,500 successful the coming days.

On the contrary, if Bitcoin terms interruption supra the apical trendline, the bulls volition apt heap successful to propulsion the terms higher toward $30,000. There are perchance invited signs for the bulls for this to happen, namely successful the BTC options and futures markets.

As Cointelegraph reported, there's inactive country to tally arsenic the indicators person yet to scope erstwhile highest levels.  

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.