It was a bearish Friday, with BTC tumbling 2.98%, to end the day at $27,461. Fears of a collapse at Deutsche Bank and Binance dragged BTC, as well as the broader crypto market, into negative territory. However, technical indicators remain bullish, with $30,000 still in sight.
On Friday, Bitcoin (BTC) fell 2.98%. Partially reversing a 3.87% rally on Thursday, BTC ended the day at $27,461. Despite the bearish session, BTC avoided sub-$27,000 for the second session in a row.
A mixed start to the day saw BTC rally to an early high of $28,376, before pulling back. Failing to reach the first major resistance level (R1) at $29,019, BTC fell to a late low of $27,000. BTC briefly fell through the first major support level (S1) at $27,341, before ending the day at $27,461.
Banking Jitters and Binance Send BTC into Negative Territory
It was an eventful weekend for the crypto market, with Binance in the spotlight.
Reports of Binance employees helping users bypass KYC checks have created fears of further regulatory scrutiny of the world’s largest exchange. Things went from bad to worse, as investors responded to the news that Binance suspended deposits and withdrawals due to a technical glitch. The news that Binance resumed deposits and withdrawals did not provide investors with reassurance.
Away from the digital asset space, the banking sector also tested buyers’ appetites. On Friday, Deutsche Bank (DB) became the latest European bank to suffer at the hands of banking jitters. Deutsche Bank ended the day with a loss of 8.53%, despite assurances from lawmakers that the bank is profitable.
Bearish sentiment led BTC to delink from the NASDAQ Composite Index, which rose 0.31%. Better-than-expected private sector PMIs from the US failed to provide BTC comfort. According to preliminary figures, the Services PMI rose from 50.6 to 53.8 in March, from the 50.5 forecast.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC was stable at $27,462. A range-bound start to the day saw BTC fall to an early low of $27,444, before leveling off.
BTC needs to move through the $27,612 pivot to target the first major resistance level (R1) at $28,225, and Friday’s high of $28,376. 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 $28,988, and resistance at $29,000. The third major resistance level (R3) sits at $30,364.
BTC settled above the 50-day EMA ($27,131). 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 50-day EMA ($27,131) would support a break of R1 ($28,225) to target R2 ($28,988) and $29,000. However, a drop through the 50-day EMA ($27,131) and S1 ($26,849) would give bears a run on S2 ($26,236). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda