Bitcoin price “sitting on the edge of a cliff” at $27,400
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(Kitco News) – Crypto prices saw moderate gains in trading on Tuesday, as the financial world continued to focus on bank-related developments in the US and Europe while the crypto ecosystem digested the lawsuit against Binance by the Commodity Futures Trading Commission (CFTC).
Stocks were down for the day while bond yields rose, with the yield on the benchmark 10-year U.S. Treasury note climbing to about 3.56% and the yield on the 2-year note jumping above 4%. At the end of the markets, the S&P, Dow and Nasdaq all finished in the red, down 0.16%, 0.12% and 0.45% respectively.
Data provided by TradingView shows that, after trading near support at $27,000 since midday yesterday, Bitcoin (BTC) saw an afternoon spike that lifted the top crypto to an intraday high of $27,600 before retreating to $27,400.
BTC/USD 4-hour chart. Source: TradingView
Yesterday’s pullback in Bitcoin resulted in weaker Bitcoin futures in April, according to Kitco senior technical analyst Jim Wyckoff. Despite the weakness, Wyckoff noted that the Bitcoin bulls “still have the overall technical advantage in the near term, but have faded this week and will need to show new strength soon to keep alive an uptrend in price on the daily bar chart.”
A good graphic representation of the fading momentum for BTC was provided by market analyst Rekt Capital, who said Bitcoin is now sitting “on the edge of a cliff.”
#BTC is on the edge of a cliff$BTC #Crypto #Bitcoin pic.twitter.com/SUFBe5ETj4
— Rekt Capital (@rektcapital) March 28, 2023
“If BTC continues to struggle to break beyond $28,700, a healthy drop may be needed to generate new buying interest at lower levels,” Rekt Capital so. “Technology is showing some near-term weakness, and it may be that a catalyst soon appears to play out that weakness.”
A follow-up chirping from Rekt Capital indicated that the top crypto needs to see a monthly candle close above $25,000 to confirm the macro downtrend breakout. “Still well positioned for breakout,” said Rekt. “In fact, BTC could drop another $1,900 (-7%) from today’s prices and still be positioned for a macro trend change.”
Further insight into the level to which Bitcoin could retreat before resuming its trek higher was provided by market analyst Caleb Franzen, who posted the following tweet highlighting the cloudiness of the 200-week moving average, which is currently near $25,000.
#Bitcoin retesting the 200-week moving average cloud seems quite logical, which fits perfectly with a structural support and resistance area.
🔵 200W EMA
200W SMAPicture-perfect breakout above the 200W MA cloud means it can act as strong support.
See $24.9k-$25.3k pic.twitter.com/HViONsGWKS
— Caleb Franzen (@CalebFranzen) March 28, 2023
Altcoins resume their uptrend
In a mirror image of yesterday’s market, the vast majority of altcoins were in the green for the day while only a handful of tokens experienced losses.
Daily performance in the cryptocurrency market. Source: Coin360
NuCypher (NU) saw the biggest gain of the day, rising 48.8% to a peak of $0.193, while Flare (FLR) price increased 24.43% and Rocket Pool (RPL) increased with a gain of 15.27% .
The total cryptocurrency market cap is now $1.15 trillion, and Bitcoin’s dominance rate is 45.8%.
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.
