Make Kitco Your Homepage

Focus

Bitcoin price 'sits on the edge of a cliff' at $27,400

Kitco News

Editor note Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here!

 

(Kitco News) - Crypto prices saw moderate gains in trading on Tuesday, as the world of finance continued to focus on banking-related developments in the U.S. and Europe while the crypto ecosystem digested the lawsuit filed against Binance by the Commodity Futures Trading Commission (CFTC).

Stocks trended down for the day while bond yields moved higher, with the yield on the benchmark 10-year U.S. Treasury note climbing to roughly 3.56%, and the yield on the 2-year note jumping to over 4%. At the close of markets, the S&P, Dow, and Nasdaq all finished in the red, down 0.16%, 0.12%, and 0.45%, respectively.

Data provided by TradingView shows that, after trading near support at $27,000 since midday yesterday, Bitcoin (BTC) saw an afternoon spike that lifted the top crypto to an intraday high of $27,600 before pulling back to $27,400.

BTC/USD 4-hour chart. Source: TradingView

Yesterday's pullback in Bitcoin resulted in weaker April Bitcoin futures prices, according to Kitco senior technical analyst Jim Wyckoff. Despite the weakness, Wyckoff noted that the Bitcoin bulls "still have the overall near-term technical advantage, but have faded this week and need to show fresh power soon to keep alive a price uptrend on the daily bar chart."

A good graphical representation of the fading momentum for BTC was provided by market analyst Rekt Capital, who said Bitcoin is now sitting “on the edge of a cliff.”

“If BTC continues to struggle to break beyond $28,700 then a healthy dip may need to occur to gain fresh buyer interest at lower levels,” Rekt Capital said. “Technicals are showing some short-term weakness & it could be that a catalyst will soon appear to play that weakness out.”

A follow-up tweet from Rekt Capital indicated that the top crypto needs to see a monthly candle close above $25,000 to confirm the macro downtrend break. “Still well-positioned for breakout,” Rekt said. “In fact, BTC could drop another $1900 (-7%) from current prices & still be positioned for a macro trend shift.”

Additional insight into what level Bitcoin could pull back to before resuming its trek higher was provided by market analyst Caleb Franzen, who posted the following tweet highlighting the 200-week moving average cloud, currently located near $25,000.

Altcoins resume their uptrend

In a mirror image of yesterday’s market, the vast majority of altcoins were in the green for the day while only a handful of tokens experienced losses.

Daily cryptocurrency market performance. Source: Coin360

NuCypher (NU) saw the biggest gain on the day, increasing 48.8% to hit a high of $0.193, while Flare (FLR) price increased 24.43% and Rocket Pool (RPL) put on a gain of 15.27%.

The overall cryptocurrency market cap now stands at $1.15 trillion, and Bitcoin’s dominance rate is 45.8%.

By

Jordan Finneseth

For Kitco News

Contact jfinneseth@kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.