Bitcoin (BTC) may have erased its losses from Binance’s “FUD,” but popular traders are anything but bullish.
Despite gaining as much as 7.5% off its March 28 lows, the BTC/USD pair is causing more suspicion than excitement with its return to local highs.
$30,000 remains the barrier for bulls
In a move that echoes its reactions to previous news such as the demise of Silicon Valley Bank, Bitcoin has recouped losses in record time.
On March 29, BTC price hit $28,650 on Bitstamp, just $200 off new nine-month highs.
Unlike before, however, the mood among market participants is clearly one of risk aversion under current conditions.
Among them is the popular trader Muro, who argued that the bounce came courtesy of high volume traders and was nothing more than a product of their strategies.
“The big guys basically put the price back to their recent short entry (red) by taking profits,” commented next to a chart of BTC/USDT perpetual futures.
“I am definitely not optimistic. Go short with little risk again.”
Others looked to longer timeframes to make the case that Bitcoin at least take a breather in its current trading range.
Historically, The area around $28,000 has been the most active in terms of volume, so attempts to convert it from resistance to support require exceptional strength.
“Which is more important, the local weekly breakout of a multi-month range, or retesting the most important supply zone of the last 2 years while we face all kinds of headwinds?” argued the trader and Analyst Cantering Clark.
“I will be as optimistic as all the carnival barkers when we are above 30k. Also, not surprisingly, in trending markets there should be nothing wrong with buying higher. Until then, respecting the resistance and positioning accordingly.”
Trader and analyst Josh Rager He agreed and added a chart of the BTC/USD pair showing the importance of the range.
China liquidity among the macro triggers of the day
Meanwhile, the BTC/USD pair was trading at $28,300 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView.
The day’s Wall Street open offered little additional momentum despite the bullish trend in US equities.
Nevertheless, Analytical account Tedtalksmacro noted the resumption of China’s central bank liquidity injections, a potentially key development given the susceptibility of crypto markets to central bank liquidity.
The Chinese Central Bank is adding liquidity again.
Largest injections via reverse repo in a month. pic.twitter.com/94NHc7lMCk
— tedtalksmacro (@tedtalksmacro) March 29, 2023
The Central Bank of China is adding liquidity again.
The largest injections through a reverse repository in a month.
As Cointelegraph reported, all eyes remain on the United States for the release of key macroeconomic data later this week.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.