Bitcoin price consolidates near $29k as altcoins trade mixed
 |
Get all important market news and expert opinions in one place with our daily newsletter. Receive a comprehensive summary of today’s top stories straight to your inbox. Sign up here! |
(Kitco News) – From a macro perspective, the cryptocurrency market continued to consolidate on Thursday as Bitcoin’s price coiled tighter within the range it has traded in since mid-March while the altcoin market was evenly split between winners and losers.
In turn, the equity market was consistently under pressure throughout the trading day as the latest rate hike by the Fed and ongoing problems in the banking sector weighed on asset prices. The S&P, Dow and Nasdaq ended the day in the red, down 0.72%, 0.86% and 0.49% respectively.
Data from TradingView shows that Bitcoin’s price hovered around the $29,000 support level in Thursday’s trading, peaking at $29,430 in the morning before falling to a daily low of $28,750 in the afternoon, only to return to support near $29,000.
BTC/USD 4-hour chart. Source: TradingView
The rally in price that started late Wednesday helped push May Bitcoin futures higher in early trading, according to Kitco senior technical analyst Jim Wyckoff, who noted that “Trading remains choppy and sideways in a range.”
BTC/USD 1-Day Chart. Source: Jim Wyckoff
“The bulls have the slight overall technical advantage in the near term,” Wyckoff said. “The direction in which prices move above or below the range defined by resistance and support lines seen on the chart [above]will likely be the direction of the next sustained trending price movement.”
The long-term outlook remains positive
Additional insight on Bitcoin following the Federal Reserve rate hike was offered by Didar Bekbauov, founder and CEO of Bitcoin group mining company Xive, who noted that “Bitcoin is testing a new weekly high after the 2.12% growth that has helped the premier coin. reclaim the prize over $29,000.”
According to Bekbauov, the sell-off witnessed yesterday highlights the anxiety experienced by institutional investors trying to navigate market volatility driven by concerns about the health of the global economy.
“Just after the US Federal Reserve unveiled its 10th rate hike of 25 BPS, the market reacted by falling, confirming the institution’s fears about the economy that prompted them to sell their BTC bags,” Bekbauov said. “The current rally is not a surprise given that the market has a propensity to reverse course on the back of volatility.”
Bekbauov added that while the market does not expect a prolonged sell-off from institutional investors, there are other headwinds that could push some owners away in the short term, but the long-term outlook is positive.
“The price of Bitcoin is poised to close Q2 at a price no less than $35,000,” he said. “The foundation upon which this growth will be hinged rests on the widely accepted belief of Bitcoin ideologues, myself included, that the coin will soon assume a decisive role in the future of money and its embrace as the leading cryptocurrency. Since I have consciously chosen to follow long-term strategies for crypto investments, like many industry professionals, I see Bitcoin as the first choice to meet long-term investment goals”.
As for what price point could signal the next leg up for Bitcoin, market analyst Michaël van de Poppe posted the following tweet, noting the sideways nature of the current market and highlighting a price target of $29,200.
#Bitcoin pretty much stuck in between. Bulls are happy, bears are happy and find arguments.
I would say a break above $29.2k and clear confirmation through a retest, that is my trigger for new highs.
Banks falling, hard as it may sound, are actually bullish for… pic.twitter.com/hu4vWqQxZa
— Michaël van de Poppe (@CryptoMichNL) 4 May 2023
Altcoin market split evenly
The altcoin market was fairly evenly split in terms of winners, losers, and the size of the price change for both groups on Thursday as crypto traders await the next big price move from BTC.
Daily performance in the cryptocurrency market. Source: Coin360
Notable performances include a 27% gain for Radicle (RAD) and a 10.72% gain for Open Campus (EDU), while Core (CORE) was the hardest-hit project in the top 200, falling 9.3%, followed by of iExec RLC (RLC) ), which saw a price decrease of 6.2%.
The total cryptocurrency market cap is now $1.05 trillion, and Bitcoin’s dominance rate is 38%.
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.
