It was a bullish Thursday, with BTC rising 3.87%, to end the day at $28,304. US Treasury Secretary Janet Yellen was involved in delivering a bullish session for the NASDAQ Composite Index, which supported a BTC rally. Technical indicators remain bullish, with $30,000 still in sight.
On Thursday, Bitcoin (BTC) rose 3.87%. Reversing a 3.07% drop on Wednesday, BTC ended the day at $28,304. BTC held control of $28,000 for the second time in three sessions.
A mixed start to the day saw BTC fall to an early low of $27,094. Moving away from the first major support level (S1) at $26,288, BTC rallied to a mid-afternoon high of $28,772. BTC broke above the first major resistance level (R1) at $28,515, before pulling back to end the day at $28,304.
Banking Jitters and Janet Yellen Assurances Provide Support
Investor angst over the banking sector resurfaced on Thursday. The Fed raised interest rates by 25-basis points on Wednesday. While Fed Chairman Powell hinted at a likely pause to assess the impact of monetary policy tightening on the banking sector and the economy, the decision to raise rates raised fears of further trouble in the banking sector.
US Treasury Secretary Janet Yellen calmed market nerves and assured investors that bank deposits were safe and policymakers have the tools to deal with a banking crisis.
Speaking at the House Appropriations subcommittee hearing, the former Fed chair had this to say:
“The strong actions we have taken ensure that Americans’ deposits are safe. Certainly, we would be prepared to take additional actions if warranted.”
The NASDAQ Composite Index rose 1.01% on Thursday, and the Dow and S&P 500 posted gains of 0.23% and 0.30%, respectively. This morning, the NASDAQ mini was up 5.75 points.
Investors should monitor crypto news wires for updates on the ongoing SEC vs. Ripple, as well as regulatory and legislator activity. Binance and Coinbase (COIN) are on the radar.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC rose 0.10% to $28,333. A range-bound start to the day saw BTC rally to an early high of $28,340 before pulling back.
BTC needs to avoid the $28,057 pivot to target the first major resistance level (R1) at $29,019. A move through Thursday’s high of $28.772 would indicate an extended bullish session. US crypto news leads and economic indicators should support cryptocurrencies to support a prolonged rally.
In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $29,735, and resistance at $30,000. The third major resistance level (R3) sits at $31,413.
BTC settled above the 50-day EMA ($26,965). The 50-day EMA has broken further away from the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA, sending bullish signals.
A hold above the 50-day EMA ($26,965) would support a break of R1 ($29,019) to target R2 ($29,735) and $30,000. However, a drop-through S1 ($27,341) and the 50-day EMA ($26,965) would give bears a run at S2 ($26,379). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda