It was a bullish session on Thursday, with BTC gaining 3.04%, to end the day at $25,061. The easing of bets on a 50-basis point Fed rate hike, as well as the pullback from Silicon Valley Bank contagion, boosted demand for riskier assets. Technical indicators are bullish, with $26,000 in sight.
On Thursday, Bitcoin (BTC) rose 3.04%. Reversing a 1.67% loss on Wednesday, BTC ended the day at $25,061. Significantly, BTC held on to the $25,000 handle for the first time since June 2022.
A mixed start to the day saw BTC fall to an early low of $24,186. Moving away from the first major support level (S1) at $23,727, BTC rallied to a high of $25,213. BTC broke above the first major resistance level (R1) at $25,120, before pulling back to end the day at $25,061.
Easing Fears of a Global Financial Crisis Supported Riskier Assets
Investor sentiment turned on Thursday, with fears of a second global financial crisis in fifteen years fading. Following the collapse of Silicon Valley Bank (SIVB) and Signature Bank (SBNY), Credit Suisse Group AG (CS) became the focal point of the market.
However, the Swiss National Bank (SNB) allayed fears of a collapse and echoed White House assurances that there would be no banking crisis.
US economic indicators were also supportive of the crypto market. Initial jobless claims fell from 212k to 192k, and the Philadelphia Fed Manufacturing Index rose from -24.3 to -23.2. Following the latest inflation and retail sales numbers, Thursday’s numbers failed to change sentiment toward the Fed.
The NASDAQ Composite Index mirrored the change in sentiment, rising 2.48%, with the Dow and S&P 500 posting gains of 1.17% and 1.76%, respectively. Investors are betting on an interest rate hike of 25 basis points and a possible pause after March. The NASDAQ mini is down 4 points this morning.
Beyond the economic calendar, investors should continue to monitor Binance, as well as FTX news and updates from the ongoing SEC vs. Ripple case.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC was down 0.10% at $25,035. A range-bound start to the day saw BTC rally to an early high of $25,058 before falling to a low of $24,954.
BTC needs to avoid the $24,820 pivot to target the first major resistance level (R1) at $25,454. A move through Thursday’s high of $25.213 would indicate an extended bullish session. Crypto news leads and economic data must be crypto to support a prolonged rally.
In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $25,847, and resistance at $26,000. The third major resistance level (R3) sits at $26,874.
The 50-day EMA has turned away from the 100-day EMA, and the 100-day EMA has turned away from the 200-day EMA, sending bullish signals.
A hold above the 50-day EMA ($23,385) would support a break of R1 ($25,454) to target R2 ($25,847) and $26,000. However, a drop-through S1 ($24,427) would bring the S2 view ($23,793) and the 50-day EMA ($23,385). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda