It was a bullish Sunday, with BTC rising 1.82%, to end the day at $27,978. Relief from Deutsche Bank jitters provided support, with no crypto events to distract investors. Technical indicators remain bullish, with $30,000 still in sight.
On Sunday, Bitcoin (BTC) rose 1.82%. Following a 0.06% gain on Saturday, BTC ended the week up 0.13% at $27,978.
A mixed start to the day saw BTC fall to an early low of $27,438. Moving away from the first major support level (S1) at $27,158, BTC rallied to an early afternoon high of $28,227. BTC broke above the first major resistance level (R1) at $27,804, and briefly through the second major resistance level (R2) at $28,130, before ending the day at $27,978.
Fears of a Deutsche Bank Collapse Ease to Provide Support
It was another quiet session on Sunday, with no crypto events or news related to the banking sector to spook investors.
Bullish sentiment towards BTC and the broader crypto market resumed amid the banking crisis, with a lack of regulatory activity and talk from US lawmakers also positive for BTC.
While an increasingly active SEC and anti-crypto sentiment on Capitol Hill leave cryptocurrencies in a precarious position, hopes of a Ripple victory in the SEC vs. Ripple could materially change the narrative. XRP had a breakout week with hopes rising for a Ripple victory.
In the final hour, the NASDAQ mini provided more support, with the banking sector likely to be the focal point for global financial markets and BTC in the near term. Alleviating fears of a collapse of Deutsche Bank (DB) provided support for BTC throughout the weekend.
However, headwinds persist, with Binance and Coinbase (COIN) coming under increasing regulatory scrutiny. There is also the lingering risk of another bank going under, after the failures of Silicon Valley Bank and Signature Bank.
Investors should monitor updates on the ongoing SEC vs. Ripple and Binance and Coinbase (COIN) related news. However, the banking sector is likely to remain the area of interest at the start of the week.
There are no US economic indicators influencing the afternoon session, leaving BTC exposed to Fed talk and the NASDAQ Composite Index.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC was down 0.05% at $27,963. A range-bound start to the day saw BTC rally to an early high of $27,996, before pulling back.
BTC needs to avoid the pivot at $27,881, in order to target the first major resistance level (R1) at $28,324. A move through the Sunday high of $28.227 would indicate an extended bullish session. Crypto news wires need to 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 $28,670, and resistance at $29,000. The third major resistance level (R3) sits at $29,459.
BTC settled above the 50-day EMA ($27,344). The 50-day EMA has broken further away from the 100-day EMA, and the 100-day EMA has broken out from the 200-day EMA, sending bullish signals.
A hold above S1 ($27,535) and the 50-day EMA ($27,344) would support a break out of R1 ($28,324) to the R2 ($28,670) target and $29,000. However, a drop-through S1 ($27,535) and the 50-day EMA ($27,344) would give bears a run at S2 ($27,092). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda