Bitcoin (BTC), which narrowed its consolidation range in March 18, as TradFi trading week was set to conclude with $40,000 remaining, looked like it would be a tightening of the market.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Traders wait patiently for paradigm shift
Cointelegraph Markets Pro and TradingView data showed that BTC/USD held $40,000 support overnight and this area was identified as “crucial” in Thursday’s analysis.
The confirmation of the United States Federal Reserve rate increase confirmed had a decrease in macro cues. However, markets were stabled overall by a lack European triggers.
Crypto Ed, a popular trader, expects to see either a continuation of the target zone of $43,000 over the next few days or a break of the current trend.
However, after analysing his Elliot Wave setup of the 4-hour BTC/USD charts, he noticed that the cycle was “still be bearish” before a range high at $45,000 was broken. This could have been due to consolidatory moves.
He said that those moves, particularly a strong bounce during a retracement “would be my signal for me to go long” in a YouTube video update on Thursday.
Others were also more bullish about the outlook. Zima, a Twitter trader, even highlighted a long-term trend breakout in on-balance volume.
Cointelegraph reported that OBV is increasing because of growing demand for assets at their current price. For Bitcoin, it seemed night to exit a sideways price area in place since January 2021.
Zima said, “I haven’t moved a single row on my OBV ever since I started tracking it 8 weeks ago.”
“We have broken through the wedge to the top and are flipping OBVMA 20 days. After a year of crab, we are at the edge of a bullish continuation that will last for several months.
Allen Au, a fellow account holder, added to the optimism and is eyeing a possible move out of Bitcoin’s 2022 range with $46,000 at its top.
Technical indicators confirm that #BTC is poised to break out to the upside. It trades within an Ascending Parallel Channel with resistance at $45K to $46K and support at $35K to $36K. ST is still in apattern. If BTC breaks out of both patterns: T1: $49K-$52K T2: $57K-$59K pic.twitter.com/GyzgYujEuh
— Allen Au (@AllenAu11) March 17, 2022
Lightning Network achieves new highs in capacity
This week saw a significant milestone in Bitcoin network growth: the Lightning Network surpassed 3,500 BTC capacity.
Related: Bitcoin will face a new milestone in 2022, as a new forecast predicts that BTC’s price will reach ‘the millions’
Lightning is part of the so-called Layer 2 technology on Bitcoin. It allows instantaneous offchain transactions to be sent in masses at virtually no cost.
This technology has been around for many years and quietly evolved to meet the needs of mainstream consumers and increasing volumes.
Dylan LeClair, an on-chain analyst, commented that the Lightning Network continues to grow at an impressive rate and that it is important not to sleep on them.
Chart showing the Lightning Network’s capacity in BTC and USD terms. Source: Bitcoin Visuals