Bitcoin Price Holds at $28,200 - When Is A Breakout Likely?

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The price of the largest cryptocurrency Bitcoin continues to consolidate between support at $27,000 and resistance roughly at $29,000. In the last 24 hours, Bitcoin price remained relatively unchanged while Dogecoin rallied, breaking above $0.1 after Elon Musk, Twitter’s CEO replaced Twitter’s home button with a dog theme image.

The largest meme coin reclaimed its position in the top ten with over 25.6% in 24-hour gains. DOGE now boasts $7.2 billion in market capitalization, with $5.6 billion in trading volume coming in over the same period.

Bitcoin Price Forming Support Backed By Bullish Sentiment

Bitcoin price reached a 10-month high in March after an impressive performance that impacted most global markets amid the banking crisis in the United States. The largest cryptocurrency is holding firmly within a new but narrow range between $27,000 and $29,000.

Although Dogecoin has led the bullish narrative on Tuesday, Bitcoin price may be close to another bullish breakout, especially if its immediate support from $28,000 to $28,200 holds.

Garry Krugljakow, founder of 0VIX, an open-source decentralized finance (DeFi) platform believes BTC “kept continuing its macro-trend before Doge” and this outlook has not changed, hinting at an incoming bullish outcome.

“BTC had a good monthly and quarterly close Sunday night, so it kept continuing its macro-trend already before Doge and is now trading in a range whilst forming support on the back of a more bullish sentiment overall in crypto and risk assets,” Krugljakow said as reported by Bloomberg.

“Doge has definitely led the narrative in the past 24 hours,” Krugljakow continued “It remains to be seen if Musk is serious about using $DOGE for payments or he is just doing his usual thing.”

Bitcoin’s rebound from the overarching declines in 2022 has elevated it to become the best-performing asset in Q1 2023 despite the US regulatory agencies tightening their grip on the industry in a bid to prevent a repeat of the FTX collapse and possibly the banking crisis that mainly affected banks offering crypto-focused financial services.

The second-largest cryptocurrency kept following in the footsteps of its older sibling BTC—and is up 56% year-to-date. Experts anticipate a larger breakout as the Shanghai upgrade activates in less than two weeks.

“That BTC and ETH can deliver those performances with such strong headwinds is a testament to the tailwinds being even stronger,” Noelle Acheson, author of the “Crypto Is Macro Now” newsletter wrote.

Investors will for the first time since the transition to the proof-of-stake (PoS) mechanism, withdraw ETH staked in the Beacon Chain smart contract.

As Bitcoin price consolidates, attention is turning to how retail investors will behave going forward. They have been instrumental in driving the prices up in the last three months.

“Crypto majors have been rangebound,” with Bitcoin oscillating between $27,00-$29,000, B2C2’s Adam Farthing said via a written statement. “The only other really outstanding feature is one of declining volumes, perhaps to be expected in a range-bound market, but perhaps not a healthy signal, as could be construed as an indication of no fresh buyers at current levels.”

Bitcoin Price Gears For The Next Breakout Eyeing $38,000

Two key levels may determine where Bitcoin price heads next after the ongoing consolidation, with a break above $29,000 likely to open the door for gains above $30,000 and subsequently to $38,000.

The other side of the fence suggests that a break and hold below support at $27,000 might open a can of worms as Bitcoin price drops to rest support at $26,000 and possibly $24,000.

Bitcoin Price Holds at $28,200 - When Is A Breakout Likely? — BTC/USD daily chart

Bulls, as shown by the Relative Strength Index (RSI), are doing their best to regain the reins, but first, the RSI in purple must flip above the moving average in yellow.

Retail traders are currently watching from the sidelines while avoiding the almost untradeable choppy market, waiting for a confirmed breakout above $29,000 and more importantly $30,000.

Similarly, the 100-day Exponential Moving Average (EMA) (the line in blue) has strengthened its position above the 200-day EMA (line in purple) hinting at a continuing uptrend.

Such a pattern involving a shorter-term moving average crossing above a long-term one is called a golden cross and often results in a sustained uptrend in the price of the asset traded.

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— JD 🇵🇭 (@jaydee_757) April 3, 2023

Bitcoin’s sideways trading is better illustrated on the four-hour chart with the help of the Bollinger Bands. Traders often use this indicator to gauge the volatility in the market and if the asset is overbought or oversold.

As the bands in the tool contract, it implies the market is ‘quiet’ while the market would be considered ‘loud’ when the bands start to expand.

One key thing about this indicator is the “Bollinger Bounce” as the upper and the lower bands generally work as support and resistance. That said, the chart shows Bitcoin price in the middle of a bounce from the lower band.

A break above the middle line would imply that Bitcoin price is preparing to close the gap to $29,000, from where it might carry on with the upswing above $30,000, bolstered by fresh momentum from retail small investors who could still be waiting for a breakout confirmation before activating their buy orders.

The Moving Average Convergence Divergence (MACD) backs the bullish technical outlook for Bitcoin price, presenting a buy signal as the MACD line in blue crosses above the signal line in red.

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