It was a bullish Tuesday, with BTC rising 1.44%, to end the day at $28,112. The containment of the banking crisis, the sentiment towards the Federal Reserve, as well as the talk between the SEC and Ripple, generated a bullish session. Technical indicators are bullish, with $30,000 still in sight.
On Tuesday, Bitcoin (BTC) rose 1.44%. Reversing a 0.82% drop since Monday, BTC ended the day at $28,112. BTC revisited the $28,000 handle for the third day in a row but failed to print a new 2023 high.
A busy morning saw BTC drop to a mid-morning low of $27,312. Moving away from the first major support level (S1) at $27,083, BTC rallied to a late afternoon high of $28,435. BTC broke above the first major resistance level (R1) at $28,392, before pulling back to end the session at $28,112.
SEC vs. Ripple Chatter and Fed Expectations Provided Support
On Tuesday, market reaction to the latest filing in the ongoing SEC v Ripple case was supportive of the crypto market in general. XRP rallied 25.25%, as investors digested Ripple’s filing to support the fair notice defense.
The defendants referenced Voyager Digital’s bankruptcy case, citing bankruptcy judge Michael Wiles’s rulings, which favored Voyager Digital.
A Ripple victory in the SEC vs. Ripple could materially alter the regulatory landscape, and quickly put an end to the anti-crypto sentiment plaguing Capitol Hill.
Investor sentiment toward the Fed also supported prices. With fears that the banking crisis will subside, markets expect the Fed to raise interest rates by 25-basis points today. Hopes for a post-March pause to assess the effects of interest rate increases on the banking system, inflation and the economy also provided support.
The NASDAQ Composite Index rose 1.58% on Tuesday, and the Dow and S&P 500 posted gains of 0.98% and 1.30%, respectively. This morning, the NASDAQ mini is down 4 points.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC was down 0.09% at $28,088. A bearish start to the day saw BTC fall from an opening price of $28,111, to a low of $28,088.
BTC needs to avoid the $27,953 pivot, to target the first major resistance level (R1) at $28,594, and Tuesday’s high of $28,435. A move through Tuesday’s high of $28.435 would indicate an extended bullish session. Crypto news wires and the Federal Reserve should go 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 $29,076, and resistance at $30,000. The third major resistance level (R3) sits at $30,199.
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 major support levels and the 50-day EMA ($26,363) would support a break from R1 ($28,594) to target R2 ($29,076) and $30,000. However, a drop through S1 ($27,471) would bring into view S2 ($26,830) and the 50-day EMA ($26,363). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda
