Bitcoin (BTC) prices have shrugged off concerns about sudden changes in long-term dormant wallets, as well as ongoing regulatory uncertainty surrounding Coinbase's lawsuit against the US Securities and Exchange Commission due to unclear encryption rules, and have rebounded strongly to a level of over $28000 for the first time in four days.This may be due to a surge in technical buying before the 50 day moving average of $27200, as well as recent support from a low point slightly above $27000
Bitcoin (BTC) prices have shrugged off concerns about sudden changes in long-term dormant wallets, as well as ongoing regulatory uncertainty surrounding Coinbase's lawsuit against the US Securities and Exchange Commission due to unclear encryption rules, and have rebounded strongly to a level of over $28000 for the first time in four days.
This may be due to a surge in technical buying before the 50 day moving average of $27200, as well as recent support from a low point slightly above $27000.
Bitcoin rebounded more than 2.5% to $28200 on Tuesday, with bulls hoping that the world's largest cryptocurrency by market value can quickly jump above the brief breakthrough of $30000 earlier this month.
Less than a week ago, when Bitcoin's changing hands price was slightly below $29000, the short-term buying signal monitored by Bloomberg was triggered.
From a historical perspective, BTC rose by approximately 7% within 10 days after the trading signal was issued.
If history is a good guide, then Bitcoin prices may quickly rebound to $31000 in the next three days.
This will require Bitcoin to return above key recent resistance levels in the form of a 21DMA around $28900 and a high in the late March/early April range of $28900- $29300.
However, given the lack of new significant resistance levels near the year high of $31000, breaking through this critical resistance zone will open the door to further gains.
The upcoming macro risks may shake everything
The upcoming major macro risk events, such as this week's US GDP and inflation report and next week's Federal Reserve meeting, employment and ISM survey data, may play a role in the workplace if they bring meaningful changes to the macro narrative.
Part of the reason for the rise of Bitcoin this year is that, in addition to the safe haven demand caused by concerns about the banking crisis and the rebound after the historical oversold market conditions in the fourth quarter of 2022, the Federal Reserve's tightening cycle is about to end.
According to the CMEFedWatch tool, the basic assumption in the market is to raise interest rates again by 25 basis points to 5.0-5.25%, and then raise interest rates by up to 100 basis points by the end of the year.
The market seems to assume that the upcoming credit squeeze, coupled with the delayed impact of active interest rate hikes, will plunge the economy into recession in the second half of this year, forcing the Federal Reserve to relax financial conditions to support growth.
This is a broad positive narrative of Bitcoin/cryptocurrency, as it assumes that future financial conditions will be more relaxed, undermining the argument that Bitcoin prices are lower.
Assuming that this statement remains largely unchanged in the coming weeks, Bitcoin prices should continue to be supported in the medium to long term.
As a reference, the analysis of long-term on chain indicators and the comparison of the long-term market cycle of cryptocurrencies, as mentioned in this recent article, is sending strong signals that cryptocurrencies have entered the early stages of a new bull market.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
