It was a bullish session on Tuesday, with BTC rising 2.28% to end the day at $24,735. US economic indicators and relief from Silicon Valley Bank jitters supported a breakout session. Technical indicators are bullish, with $30,000 in the offing.
On Tuesday, Bitcoin (BTC) rose 2.28%. Following a 9.51% rise on Monday, BTC ended the day at $24,735. Significantly, BTC revisited the $26,000 handle for the first time since June 2022.
After a range-bound start, BTC rallied to a high of $26,529 at midday before pulling back. BTC broke through the first major resistance level (R1) at $25,229 and the second major resistance level (R2) at $26,276. However, the reversal caused BTC to slide to a low of $24,060. Moving away from the first major support level (S1) at $22,507, BTC rallied to end the day at $24,735.
US Economic Indicators and NASDAQ Composite Provide Support
US economic indicators generated a bullish session, with the all-important US CPI report attracting a lot of interest.
In February, the annual inflation rate moderated from 6.4% to 6.0%, in line with expectations. The softer headline number supported a less aggressive Fed rate path to bring inflation to target.
BTC rose 4.82% to $25,970 in the first 30 minutes of the report. The easing of contagion risk from Silicon Valley Bank (SIVB) added to the bullish sentiment. The White House and global policymakers assured that they would handle the crisis, and they provided belated support.
On Tuesday, the NASDAQ Composite Index rose 2.14%, and the Dow and S&P 500 posted gains of 1.06% and 1.65%, respectively. The NASDAQ mini is down 17.5 points this morning.
China’s economic indicators will influence market risk sentiment this morning. Fixed asset investment, industrial production, and retail sales figures for February will attract a lot of interest. Strong numbers would boost demand for BTC and the broader crypto market.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC was up 0.03% at $24,743. A range-bound start to the day saw BTC rally to an early high of $24,757, before pulling back.
BTC needs to avoid the $25,108 pivot to target the first major resistance level (R1) at $26,156 and Tuesday’s high of $26,529. A return to $25,000 would indicate a prolonged bullish session. The crypto news wires, as well as economic data, should be crypto-friendly to support a prolonged rally.
In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $27,577. The third major resistance level (R3) sits at $30,046.
BTC settled above the 200-day EMA ($22,547). The 50-day and 100-day EMAs have converged on the 200-day EMA, signaling a possible breakout of BTC.
Bullish crosses of the 50-day and 100-day EMAs through the 200-day EMA would signal a breakout session. However, a drop-through S1 ($23,687) would bring S2 ($22,639) and the EMAs into view. A drop through the 50-day EMA ($22,532) would send a bearish signal.
By Audy Castaneda
