Bitcoin regains support at $28,400 as Q1 draws to a close
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(Kitco News) – Financial markets rose Wednesday as investors took a positive look at the first quarter of the year amid a spreading banking crisis that has many financial experts wondering about the overall health of the global economy.
US stocks were higher across the board, leading to a positive close for the major indexes, with the S&P, Dow and Nasdaq closing up 1.42%, 1.00% and 1.79% respectively.
Data provided by TradingView shows that Bitcoin (BTC) bulls managed to lift the top crypto back above $28,700 in early trade on Wednesday, but stiff resistance from bears halted further gains, resulting in a pullback to support at $28,400.
BTC/USD 4-hour chart. Source: TradingView
The rise in spot prices was mirrored in futures markets, with “April Bitcoin futures prices solidly higher in early US trading Wednesday,” according to Kitco senior technical analyst Jim Wyckoff.
“BC bulls have the overall technical advantage in the near term and are keeping alive a price uptrend on the daily bar chart,” he added. “The trend is the bull’s friend.”
For analysts at Eight Global, consolidation is the one word that perfectly describes the volatility of the last couple of weeks without a big change in price. “It is identified by sideways price action moving in a specific range from low to high,” they wrote.
“As you can see, the price has been moving sideways between $26.5K and 28.4K for a week and a half now. Twice we saw the price trade above the high area. After that we saw a drop back down into the area which is a bearish sign. If the price trades above or below the range, this phenomenon is called deviation.”
BTC/USD 1 hour chart. Source: TradingView
Eight Global recommended trading these types of areas “level by level”. That means when Bitcoin approaches the interval high but doesn’t shoot through immediately, it signals an opportunity to short.
BTC/USD 1 hour chart. Source: TradingView
“Your first area of profit in this case should be the equilibrium of the area, and the second is on the low area,” they said. “If we first get a retracement at these levels towards the equilibrium of the area. Then you can look long towards high distances.”
For those not interested in playing the range trading game and just want a simple approach to investing in Bitcoin, Eight Global founder Michaël van de Poppe posted the following tweet highlighting the practice of dollar cost averaging.
Purchase #Bitcoin to $28K may be expensive for your investment, but that’s often because people let emotions get in the way.
A slight swing in the portfolio and people stop following their plan.
If you want to invest in #Bitcoinjust accumulate and DCA at these prices.
— Michaël van de Poppe (@CryptoMichNL) March 26, 2023
Altcoin rally extends a second day
The altcoin market benefited from the mining of Bitcoin and saw its second consecutive day of widespread green for the top 200 tokens.
Daily performance in the cryptocurrency market. Source: Coin360
Solar (SXP) led the market with a 54.64% gain to trade at $0.4844, followed by a 21.72% gain for Conflux (CFX) and an 18.96% gain for Celo (CELO).
The total cryptocurrency market cap is now at $1.186 trillion, and Bitcoin’s dominance rate is 46.3%.
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.
