Bitcoin price 'sits on the edge of a cliff' at $27,400
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(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 $27,400.
BTC/USD 4-hour chart. Source: TradingView
Yesterday's pullback in Bitcoin resulted in weaker April Bitcoin futures prices, according to Kitco senior technical analyst Jim Wyckoff. Despite the weakness, Wyckoff noted that the Bitcoin bulls "still have the overall near-term technical advantage, but have faded this week and need to show fresh power soon to keep alive a price uptrend on the daily bar chart."
A good graphical representation of the fading momentum for BTC was provided by market analyst Rekt Capital, who said Bitcoin is now sitting “on the edge of a cliff.”
#BTC is on the edge of a cliff$BTC #Crypto #Bitcoin pic.twitter.com/SUFBe5ETj4— Rekt Capital (@rektcapital) March 28, 2023
“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.
#Bitcoin retesting the 200-week moving average cloud seems pretty logical, which aligns perfectly w/ a structural support & resistance range.— Caleb Franzen (@CalebFranzen) March 28, 2023
?? 200W EMA
?? 200W SMA
Picture-perfect breakout above the 200W MA cloud means that it could act as strong support.
Watch $24.9k-$25.3k pic.twitter.com/HViONsGWKS
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%.