Bitcoin (BTC) faces a choice between two key levels as part of a “macro-trend-defining range,” according to analytics.
In a Twitter poll On March 27, monitoring resource Material Indicators said that BTC’s price action was now in a critical trading zone.
The market gives clues that “a great movement is coming”
Bitcoin has managed to withstand a new wave of negative news involving the world’s largest exchange, Binance.
Although commentators maintain that the repercussions of the United States regulatory action against Binance US may be limited, concerns remain that the BTC/USD pair will not be able to continue its bullish momentum.
With a key monthly close approaching, Material Indicators identified two important levels for bulls to protect and break above, respectively.
These are the 200-week moving average (WMA) to the downside and $30,000 to the upside. Although previously known, a new survey now shows that market sentiment favors a retest of support first.
#Bitcoin is literally at a MACRO Trend defining range.
Technical Support at the 200 Week Moving Average is currently ~USD 25,550, and resistance is at USD 30k
In your opinion, what happens first?
— Material Indicators (@MI_Algos) March 28, 2023
“When the market looks indecisive it is often a clue that a big move is coming,” Material Indicators added in part of other comments.
“Waiting for the 200 WMA to be tested before we hit the weekly close, possibly even before the monthly close on Friday.”
An accompanying chart showed the BTC/USD order book on Binance with the associated bid and ask liquidity pools.
Trader and analyst Rekt Capital, meanwhile, continued to draw comparisons to Bitcoin’s current performance and its movements since the COVID-19 cross-market crash in March 2020, when it briefly lost the 200 WMA for support.
“In the end, BTC repeated its March 2020 bearish wick depth below the 200 MA. USD BTC deviated -28% to hit the ~$15,500 price point. Since then, BTC has rallied +90 % from lows”, summarized that day.
Now, BTC may be dipping in an effort to recapture the 200-week MA for support.
Where is the volatility?
In the midst of the Binance debacle, others meanwhile stepped back to argue that both Bitcoin and crypto in general had performed extremely well given the range of disruptive events that have unfolded in recent weeks.
Related: Will BTC ditch the bear market? 5 things to know in Bitcoin this week
We’ve undergone the following in the past month:
• 2nd & 3rd largest bank failures in US history
• Credit Suisse essentially bailed out
• Federal Reserve +0.25% rate hike
• ECB +0.5% rate hike
• 2 major crypto banks shutdown
• Coinbase issued a Wells notice
• CZ & Binance… pic.twitter.com/TY7DN6QjcY—Caleb Franzen (@CalebFranzen) March 28, 2023
Caleb Franzen, Senior Market Analyst at Cubic Analytics, further noted that macro market volatility remained comparatively low.
“What will be the straw that breaks the camel’s back? Will it even break?” asked.
“So far, nothing has produced material downward pressure for the broader market (equities or crypto)…”
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