Bitcoin consolidates near $28,000 as markets remain on edge
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(Kitco News) – The crypto market remains resilient amid the spreading banking crisis as governments’ efforts to stem the contagion continue to be overwhelmed by the dire realities present in the global financial system, prompting investors to take a closer look at cryptocurrencies.
U.S. stocks managed to reverse their early losses on Friday to climb higher into the market despite comments by St. Louis Fed President James Bullard that interest rates could continue to rise to 5.625% if economic stressors begin to ease in the coming weeks. At the closing bell, the S&P, Dow and Nasdaq recorded gains of 0.48%, 0.34% and 0.15% respectively.
Data provided by TradingView shows that Bitcoin (BTC) remains in a consolidation pattern near the $28,000 support, where it has been trading for the past week as investors have once again started turning to the top crypto for their safe haven.
BTC/USD 4-hour chart. Source: TradingView
A slowdown in momentum for Bitcoin was evident in the futures market, according to Kitco senior technical analyst Jim Wyckoff, who noted that “April Bitcoin futures prices are weaker in early US trading,” in his morning Bitcoin update.
“The recent pause in price action, at higher levels, is not unusual and not bearish,” Wyckoff said. “Bulls still have the solid technical advantage in the near term amid a price uptrend that remains in place on the daily bar chart. More upside is likely in the near term.”
A pause before climbing higher
Several analysts agree with Wyckoff that the outlook for Bitcoin is positive, including Eight Global founder Michaël van de Poppe, who posted the following tweet as Bitcoin retested the highs near $29,000, suggesting a pullback to $25,300 dollar was a possibility before Bitcoin continues its trip higher. .
Yes, test the heights it is for #Bitcoin after breaking $27,800.
Would like to see the $27,700 area held for continuation.
If I lose, I’ll still be looking at $25,300-25,800 for a long time before $40K.
The general thesis remains so. pic.twitter.com/LwGAhNUQxL
— Michaël van de Poppe (@CryptoMichNL) March 23, 2023
A look at how the top crypto’s price action could look going forward was provided by decentralized finance analyst Yoddha, who posted the following chart highlighting a fractal pattern that could see bitcoin rally to $50,000, pull back to $30,000, and then surge to new all-time highs.
We had the exact number of days between the previous top and bottom as of now.
If the plan works out, we can expect:
$50,000 -> $30,000 -> ATH #Bitcoin pic.twitter.com/226ZJQQVDz— Yoddha (@CryptoYoddha) March 24, 2023
In an effort to prepare crypto investors for the volatile ride ahead, market analyst Rekt Capital posted the following tweet, stressing the importance of keeping emotions in check when it comes to trading the crypto market.
In the coming months there will be periods of both #BTC uptrending and downtrending price action
Just knowing that will make you less emotional about the moves that are happening
You don’t have to use every move because there is always another option$BTC #Crypto #Bitcoin
— Rekt Capital (@rektcapital) March 24, 2023
Altcoins are consolidating
The altcoin market largely mirrored Bitcoin’s move to consolidation, with only a handful of tokens seeing price increases on Friday, while the majority posted small losses.
Daily performance in the cryptocurrency market. Source: Coin360
OMG Network was the lone double-digit gainer on the day, rising 15.46% to a high of $2.14, while Helium (HNT) gained 9.3% and BinaryX climbed 7.51%.
The total cryptocurrency market cap is now $1.158 trillion, and Bitcoin’s dominance rate is 46.4%.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.
