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After displaying an optimistic outlook on Sunday, hinting at a possible outbreak above $30,000, Bitcoin’s price underwent a downfall and hovered around $29,300 before it proceeded to collapse at around $28,500.
Bitcoin Price Hovers Around $28,500 After Hinting an Outbreak Above $30,000
Over the past few days, Bitcoin’s price has maintained a relatively stable position above $29,000. Despite the low trading volume, the altcoins also did not witness any significant price fluctuations during the weekend.
However, when we look at the weekly scale, we can see that BTC’s dominance over the altcoins has increased by over 1%. This indicates that Bitcoin has been performing relatively better than the alternative cryptocurrencies in the market.
Last Monday, Bitcoin’s price experienced a brief surge to $28,000, but it returned to $27,000 shortly after. The cryptocurrency began to climb again late on Tuesday, and within a few hours, it had reached $30,000. Unfortunately, the asset faced rejection at that point, which was driven by false news in the market. As a result, BTC’s price dropped by $3,000, and it returned to its previous price position.
Bitcoin has been able to maintain its price stability, hovering at around $29,000 in the past few days. And struggling to upkeep the $28,500 level at the time of writing. The cryptocurrency’s price reached as high as $30,000 after the US banking issues came to light, but it has since returned to its current range.
With a market cap of $551 billion, Bitcoin’s dominance over other cryptocurrencies has declined by about 1% since last week and currently stands above 48.27%.
Trading volumes in the cryptocurrency market have been relatively low during the past few weekends, with this one being no exception. As a result, most of the altcoins have not displayed significant price movements in either direction.
Ethereum, for instance, has remained stable at $1,900. Other popular cryptocurrencies such as Polygon, Ripple and Cardano are slightly in the red, suggesting that the cryptocurrency market is currently in a consolidation phase.
Dogecoin, Solana, Polkadot, Litecoin, and Tron have all marked insignificant daily gains, while BNB is the only substantial gainer from the top 50 alts, with a 3.29% daily increase. Overall, though, the market cap has contracted and currently stands inches below $1.2 trillion.
Bitcoin Technical Price Action and Technical Analysis
Bitcoin’s price is currently encountering some hurdles as it tries to break above the $28,500 and $28,800 levels. At present, the cryptocurrency is trading below $28,500 and the 100 hourly Simple Moving Average.
On the BTC/USD hourly chart, a significant bearish trend line with resistance near $28,650 has formed. For a fresh increase to take place, the pair must hold above the $27,850 support zone.
Despite gaining momentum to move above the $28,300 resistance zone, Bitcoin has struggled to maintain a positive zone above the $28,400 and $28,500 resistance levels. As a result, the bulls were unable to overcome the $30,000 resistance, leading to a new drop.
The cryptocurrency slipped below the $29,500 and $29,200 support levels, hitting a low of $27,000 on Monday. However, it has since begun to recover from this decline.
Moving forward, the immediate resistance for Bitcoin is at the $28,650 level, followed by the $29,000 zone and trend line. If the cryptocurrency manages to overcome these resistances, it could lead to a test of the critical barrier at $30,000.
On the downside, the $28,400 level serves as the initial support, with $27,850 as the next significant support. If the price continues to fall, it may reach the $27,200 support zone, potentially followed by $26,500.
Technical indicators suggest that the Moving Average Convergence Divergence (MACD) is gaining momentum in the bearish zone, while the Relative Strength Index (RSI) for BTC/USD is currently below the 40 level. As a result, Bitcoin’s major support levels are at $28,300 and $27,850, while its major resistance levels are at $29,000, $29,200, and $30,000. Traders and investors should closely monitor these levels to make informed decisions about Bitcoin trades.
BTC Technical Analysis Suggests a Positive Outlook- Will it Breakout Above $30,000?
On Sunday, the price of Bitcoin (BTC) didn’t change much and remained flat after reaching near $30,000 briefly but then dropping back down. The Chinese private sector PMI numbers and updates from First Republic Bank played an important role in determining the price movements of the cryptocurrency.
Although the economic indicators from China were negative, the technical indicators suggest a positive outlook and signal a possible breakthrough beyond the $30,000 level. It’s worth noting that BTC didn’t fall below the sub-$27,000 level for the second time since March 23, which is a good sign for investors.
In terms of external factors, recessionary jitters fueled by China’s economic indicators, SEC activity, and news related to the First Republic Bank were the key drivers of investor sentiment. The US regulators attempted to sell the beleaguered bank to a large US bank, with JP Morgan Chase (JPM) reportedly being the front-runner.
However, news of other banks submitting bids in a First Republic Bank auction eased bets on another US bank collapse. The SEC fining Coinme and issuing a Cease-and-Desist also weighed on investor sentiment.
Investors will continue to track the news related to First Republic Bank and the US ISM Manufacturing PMI numbers scheduled for the afternoon session.
As the Fed’s monetary policy decision approaches, a more marked contraction in the manufacturing sector and a fall in prices and employment sub-components could give the FOMC doves more voice.
Additionally, investors should keep an eye on regulatory activity and US lawmaker chatter throughout the session. Bitcoin had a relatively busy Monday session with investors keeping an eye on the US ISM Manufacturing PMI numbers and the First Republic Bank-related news.
While these external factors will continue to have a significant impact on Bitcoin’s price in the near future, technical analysis suggests that BTC’s breakout above the $30,000 level is highly likely. With that being said, investors must do their own research before making any investment decisions.
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