Bitcoin surges into a former support zone, should you expect a breakout

ambcrypto.com:

The volatility returned just before the opening of the Asia markets. Bitcoin posted rapid gains and appeared to violently invalidate the idea that the market would continue to descend.

However, from a technical perspective, there remained a chance that BTC could resume the previous slump after the gains of the past few hours.

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$212 million were liquidated in the past 24 hours and 83.5% of them were short positions, according to Coinglass data.

The return of BTC to a former trendline resistance offered an ideal opportunity to short the king of crypto once more- but will this be a successful trade?

Source: BTC/USDT on TradingView

The $21.6k mark served as an important level of support on 10 February and the rally to $25.2k continued after a retest of this level. Over the past week, the price fell rapidly beneath the $22.2k lower timeframe support and crashed straight past the $21.6k support as selling pressure intensified.

The weekend saw Bitcoin settle around the $20k mark after a 4-hour candlewick down to $19.5k. Buyers stepped in as the markets began to open in Asia, and the prices saw a massive rally. The move from $20.3k to $22.5k measured 11%, but the price was yet to break the bearish structure on the daily chart.

As for the H4 structure itself, it was debatable. More aggressive approaches would count the move above $20.6k as a structural shift. On the other hand, a more conservative approach would be to wait for a session close above $22.6k.

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The lower high at $22.6k formed early in March and developed over four days, while the $20.6k one occurred over a weekend. Hence, Bitcoin buyers had grounds to remain cautious