Bitcoin price will reach this key level before $30,000, survey says
Bitcoin (BTC) faces a choice between two key levels as part of a “macro trend-defining area,” the analysis says.
In a Twitter survey On March 27, monitoring resource material indicators said BTC price action was now in a critical trading zone.
The market gives clues that “big move is coming”
Bitcoin has managed to hold out against a new wave of negative news involving the largest global exchange Binance.
While commentators argue that the fallout from US regulatory actions against Binance US may be limited, there are still concerns that BTC/USD will not continue its upward momentum.
With a key monthly close, the Material Indicators identified two key levels for bulls to protect and overcome, respectively.
This is the 200-week moving average (WMA) to the downside and $30,000 to the upside. Although it is already known, a new survey now shows that market sentiment favors a support test first.
#Bitcoin is literally in a MACRO Trend defining area.
Technical support at the 200 week moving average is currently ~$25,550 and resistance is at $30k
In your opinion, what happens first?
— Material Indicators (@MI_Algos) March 28, 2023
“When the market seems indecisive, that’s often a clue that a big move is coming,” Material Indicators added in a piece of additional commentary.
“Expect the 200 week moving average to be tested before we get to weekly bars, possibly even before the month end on Friday.”
An accompanying chart showed the BTC/USD order book on Binance with associated buy and sell liquidity clusters.
Trader and analyst Rekt Capital, meanwhile, continued to draw comparisons to Bitcoin’s current behavior and its movements from the March 2020 COVID-19 cross-market crossover when it briefly lost the 200 WMA as support.
Related: US law enforcement agencies turn up the heat on crypto-related crime
“Finally, BTC retook its March 2020 trough below the 200 MA. $BTC deviated by -28% to reach the ~$15500 price point. Since then, $BTC has rallied +90% from the lows,” he in summary on the day.
“Now BTC may dip in an attempt to regain the 200-week MA as support.”
Where is the volatility?
Amidst the Binance debacle, meanwhile, others zoomed out to argue that both Bitcoin and crypto in general had performed extremely well given the spectrum of destabilizing events that have emerged in recent weeks.
Related: Will BTC Drop the Bear Market? 5 things to know in Bitcoin this week
We have reviewed the following over the past month:
• 2nd and 3rd largest bank failures in US history
• Credit Suisse essentially bailed out
• Federal Reserve +0.25% interest rate increase
• ECB +0.5% interest rate increase
• Closure of 2 large crypto banks
• Coinbase issued a Wells alert
• CZ and Binance… pic.twitter.com/TY7DN6QjcY— Caleb Franzen (@CalebFranzen) March 28, 2023
Caleb Franzen, senior market analyst at Cubic Analytics, further noted that volatility in the macro market remained relatively low.
“What will be the straw that breaks the camel’s back? Will it even break?” he asked.
“So far, nothing has resulted in material downward pressure for the overall market (stocks or crypto)…”
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making a decision.
