It was a bullish Saturday, with BTC rising 0.21% to end the day at $24,633. The Fear & Greed Index stayed within the Greed zone, holding steady at 60/100.
On Saturday, bitcoin (BTC) rose 0.21%. Consolidating a 4.48% rally since Friday, BTC ended the day at $24,633. Despite the bullish session, BTC failed to reach the $25,000 level for the first time in three sessions.
After a range-bound start to the day, BTC fell to a low of $24,450 by late morning. Moving away from the first major support level (S1) at $23,614, BTC rallied to a late-afternoon high of $24,878. Missing the first major resistance level (R1) at $25,287, BTC pulled back, to end the day at $24,633.
Regulatory Risk Relief Continued to Provide BTC Price Support
It was a quiet Saturday, with no crypto events affecting investor appetite. The lack of events made investors consider the events of the week.
Following the SEC’s moves against cryptocurrency staking and stablecoins, increased scrutiny from US lawmakers on SEC activity led to a bullish midweek session. While the shift in sentiment toward regulatory risk outweighed Fed fears, the increased likelihood of a more hawkish Fed interest rate path remains a drag on the crypto market.
However, there would have to be a deteriorating macroeconomic environment that would affect investor confidence. The latest round of US statistics removed any immediate fears of an economic downturn in the US. Retention sales rose 3.0%, with labor market conditions difficult despite the policy measures of the Fed to bring inflation to target.
The talk between the SEC and US lawmakers will continue to be in the spotlight. However, investors would have to monitor crypto news wires for news related to Binance, FTX, Genesis, and Silvergate Bank.
Bitcoin (BTC) Price Action – Technical Indicators
BTC needs to avoid a drop through the $24,654 pivot to target the first major resistance level (R1) at $24,857. However, a return to $25,000 would signal a breakout 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 $25,082 and Thursday’s high of $25,234. The third major resistance level (R3) sits at $25,510.
A drop through the pivot would bring the first major support level (S1) into play at $24,429. However, barring a crypto event-driven sell-off, BTC should avoid going below $24,000. The second major support level (S2) at $24,226 should cap the downside. The third major support level (S3) sits at $23,798.
A hold above the major support levels and the 50-day EMA ($23,455) would support a break from R1 ($24,857) to the R2 ($25.08) target. However, a drop through S1 ($24,429) would give the bears a run on S2 ($24,226). Barring a crypto event, BTC should avoid the 50-day EMA ($23,455).
By Audy Castaneda
