Bitcoin Price Drops Back To $28,200 -Will Friday Bring Another Push?
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The price of Bitcoin has dropped back to $28,200 after climbing past $28,800 on Thursday. Is this a short correction or a return to the bearish? Let’s find out!
Bitcoin Back To $28,200- Still A High For The Year
Bitcoin had been undergoing a significantly massive surge since the start of 2023, marking most of its gains for the year in the first month itself. The number one crypto token displayed a remarkable performance in January, closing the month with a gain of well above 35%.
The market leader further managed to keep above the closing levels for Jan in the following month, although the performance was relatively underwhelming when compared to the month prior. Despite that, bitcoin did manage to make single-digit percentage gains at its highest in February.
It wasn’t until March that the token started to bottom out, signaling a possible end of the bull cycle for the year. Bitcoin continued to maintain a downtrend from the end of the third week of February, up till the 10th of March. Anticipations regarding the possible hike of interest rates from the Fed significantly contributed to the downfall of the token.
It wasn’t until March 12th that the token managed to display some upward momentum. In fact, Bitcoin returned back to its high for the year in just a couple of days and was trading quite close to $26,000 on the 14th of March.
With some consolidation in a few days following the high, the token managed to pick up again and has been continuously rising until Wednesday. For the first time in the year, the token had managed to move past $28,800, it soon saw a decline as the Fed announced the interest rate hike on Thursday.
Many investors booked their profits, causing a downfall in the price of the token on Thursday when the price of the token dropped back to $26,760. This was quite short-lived though, as Bitcoin made it back close to its previous high and is currently trading at $28,300.
Investors have been on the edge of their seats throughout the week, expecting the token to move past the $30,000 price level, a level termed quite critical in determining the end of a bearish run for bitcoin. Now that the token has managed to recover, the $30k level might be in sight for the weekend, and there are a bunch of factors that could catalyze this uprise.
Bitcoin Becomes A Safe Haven As Banking Sector Raises Uncertainty
Following the announcement from the FOMC meeting, the cryptocurrency market saw an uptrend, where Bitcoin and many other cryptocurrencies rose after a sell-off a day prior. The news from Federal Reserve Chair Jerome Powell indicated that the central bank’s campaign to raise interest rates might soon come to an end.
While this may have provided relief for market participants, the instability of the banking sector continues to rise and has been concerning for non-crypto investors. Crypto investors, on the other hand, continue to be at an advantage as the rising concerns create opportunities for new traders to enter the market.
This optimism from the crypto market has been reflected in US equities as well, where the S&P, Dow Jones Industrial Average and Nasdaq were up 0.44%, 0.42% and 1.01% respectively. Bitcoin too followed an uprise throughout the day, climbing as high as $29,000 before falling back to the $28,300 support level. Bitcoin’s futures were trading at a high as well on Thursday, indicating a possible uprise in the near future.
A rise of interest rates by a quarter percentage, amidst market uncertainty and the crisis in the banking sector, has reinstilled the belief of Bitcoin being a safe haven for investors. A significant number of investors shifted their investments from traditional equity to crypto, and Bitcoin was quite dominant here.
Despite the uptick in regulatory scrutiny from regulators in these regions, the mindset is changing gradually and solidly, which is why regulators have taken notice. While further global liquidity issues might be in sight and regulators will take enforcement actions, there may still be one or two more notable drawbacks in the crypto market this year before things ramp up for a bull market in 2024 and 2025.
The crypto market has demonstrated resilience throughout the year, with Bitcoin continuing to be seen as a safe-haven asset amidst the instability of traditional finance. While there may be some selling pressure due to recent events, the momentum and narrative of Bitcoin and the crypto market are strong, with the potential for significant growth in the coming months.
Will Bitcoin Reclaim $30,000 By The Weekend?
Bitcoin’s price has experienced a massive rally after forming a pullback to the 61.8% level of the Fibonacci entrancement level at $19.6K, and the token is currently above $28,000 after hinting at a possible move past $29k. Investors are now eying the token, expecting it to cross a critical psychological resistance at $30,000. As this will indicate the end of a bear run.
The token might undergo a short-term correction, as the RSI indicator and the price of the token is divergent. The RSI indicator and the price show a clear divergence, which may lead to a short-term correction or consolidation stage.
The 4-hour timeframe highlights the impulsive bullish rally, but there has been a decrease in the bullish momentum recently, and it won’t be surprising for the token to undergo some consolidation in the short term.
In this scenario, Bitcoin could find itself at two major support levels: the $25K support level and the price zone between the 0.5 and 61.8 Fib retracement levels at around $24.4K and $23K.
On-chain Analysis suggests that the recent surge has led to positive sentiment in the market, and as investors are reclaiming their positions after taking a profit, the token could very well witness a spike in the near short term. So far, the token has been moving sideways for the day with a decrease in 24-hour trading volume, and bitcoin could be laying the foundation for a possible uprise to $30,000 by the weekend. Bitcoin Price Drops Back To $28,200 – will Friday Bring Another Push?
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