It was a bullish end to a bullish quarter, with BTC rising 1.57%, ending Friday at $28,460. US economic indicators supported an afternoon breakout, and investor hopes for a win of Ripple in the SEC vs. Ripple case also provided support. Technical indicators are bullish, with $30,000 in sight.
On Friday, Bitcoin (BTC) rose 1.57%. Reversing a 1.14% loss on Thursday, BTC ended March up 23% to $28,460. It was an impressive first quarter, with BTC rising 71.8%. Notably, it was the first quarterly profit since the fourth quarter of 2021.
After a busy morning, BTC fell to a mid-afternoon low of $27,504. Pulling away from the first major support level (S1) at $27,408, BTC responded to lower US inflation figures, hitting a session high of $28,651. However, failing to reach the first major resistance level (R1) at $28,902, BTC pulled back. to end the day at $28,460.
US Economic Indicators and Hopes of a Ripple Victory Provide Support
On Friday, US economic indicators boosted demand for riskier assets, with inflation in the spotlight.
The core PCE price index rose 4.6% versus the 4.7% forecast. In January, the index rose 4.7%. On a month-over-month basis, the Index rose 0.3% versus the 0.4% expected. US indices responded to softer inflation numbers, with the NASDAQ Composite Index rising 1.74%.
Investors ignored regulatory jitters at the end of the quarter. Hopes of a Ripple victory in the ongoing SEC vs. Ripple case provided support. With the SEC and Gary Gensler targeting the digital asset space with increased scrutiny, investors might be hoping for a Ripple victory to end the reign of app regulation.
With no external market forces to consider, investors are likely to continue to respond to US economic indicators starting Friday. However, markets should monitor crypto newswires for updates on the ongoing SEC vs. Ripple case. News related to Binance and Coinbase (COIN) will also move the dial.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC was stable at $28,460. A range-bound start to the day saw BTC rally to an early high of $28,551, before pulling back.
BTC needs to avoid the $28,205 pivot to target the first major resistance level (R1), at $28,906. A move through Friday’s high of $28,651 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 $29,352, and resistance at $30,000. The third major resistance level (R3) sits at $30,499.
BTC settled above the 50-day EMA ($27,810). 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 the 50-day EMA ($27,810) would support a break of R1 ($28,906) to target R2 ($29,352) and $30,000. However, a drop through the 50-day EMA ($27,810) and S1 ($27,759) would bring into view S2 ($27,058) and the 100-day EMA ($27,034). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda
