It was a bearish Monday, with BTC tumbling 0.82%, to end the day at $27,714. Easing investor fears of a global banking crisis left BTC on the back foot, with investors securing solid gains. However, technical indicators are bullish, with $30,000 still in sight.
On Monday, Bitcoin (BTC) fell 0.82%. Partially reversing a 3.82% gain from the previous week, BTC ended the day at $27,714. Despite the bearish session, BTC revisited the $28,000 level and made a new high in 2023.
A busy morning saw BTC drop to a mid-morning low of $27,130. Moving away from the first major support level (S1) at $27,073, BTC rallied to a late-morning high of $28,439. However, failing to reach the first major resistance level (R1) at $28,577, BTC revised below $27,500 before ending the session at $27,714.
Investors Return to Higher-Risk Assets to Leave BTC in the Red
On Monday, the European and US stock markets brushed aside a bearish session in the Asian market. Investors have responded to the news that UBS AG (UBS) has agreed to acquire Credit Suisse Group (CS) to avoid a banking catastrophe.
A change in sentiment toward the Fed’s monetary policy provided further support. Following the collapse of Silicon Valley Bank and Signature Bank (SBNY), the broader market expects the Fed to hike rates by 25 basis points and signal a post-March pause.
Some speculated that the Fed could leave rates on hold tomorrow. However, BTC reversed gains late in the session, with investors locking in gains ahead of the Fed’s interest rate decision on Wednesday.
The NASDAQ Composite Index rose 0.39% on Monday, and the Dow and S&P 500 posted gains of 1.20% and 0.89%, respectively. This morning, the NASDAQ mini is down 8.25 points.
There are no US economic indicators to move the dial, with US real estate in the spotlight this afternoon. However, investors should continue to monitor the crypto news wires. Binance and FTX news and updates on the ongoing SEC vs. Ripple will attract interest. While regulators and legislators continue to be distracted by problems in the banking sector, regulatory activity also needs consideration.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC was up 0.34% at $27,809. A mixed start to the day saw BTC fall to an initial low of $27,675, before rising to a high of $27,934.
BTC needs to avoid the $27,761 pivot to target the first major resistance level (R1) at $28,392 and Monday’s high of $28,439. A return to $28,000 would indicate a prolonged 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 $29,070, and resistance at $30,000. The third major resistance level (R3) sits at $30,379.
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 ($25,921) would support a break from R1 ($28,392) to the R2 ($29,070) target and $30,000. However, a drop-through S1 ($27,083) would bring into view S2 ($26,452) and the 50-day EMA ($25,921). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda
