Bitcoin price consolidates near $29k as altcoins trade mixed
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(Kitco News) - From the macro perspective, the cryptocurrency market continued to consolidate on Thursday as Bitcoin’s price coiled tighter within the range it has been trading in since the middle of March while the altcoin market was evenly split between winners and losers.
The stock market, on the other hand, was consistently under pressure throughout the trading day as the latest interest rate hike from the Fed and ongoing troubles in the banking sector weighed heavily on asset prices. The S&P, Dow and Nasdaq all finished the day in the red, down 0.72%, 0.86% and 0.49% respectively.
Data from TradingView shows that Bitcoin’s price oscillated around the $29,000 support level in Thursday’s trading, hitting a high of $29,430 in the morning before falling to a daily low of $28,750 in the afternoon, only to return to support near $29,000.
BTC/USD 4-hour chart. Source: TradingView
The ramp-up in price that started late on Wednesday helped push May Bitcoin futures higher in early trading, according to Kitco senior technical analyst Jim Wyckoff, who noted that “Trading remains choppy and sideways in a range.”
BTC/USD 1-day chart. Source: Jim Wyckoff
“The bulls have the slight overall near-term technical advantage,” Wyckoff said. “The direction in which prices move above or below the range, defined by resistance and support lines seen on the chart [above], will very likely be the direction of the next sustained trending price move.”
Long-term outlook remains positive
Further insight on Bitcoin following the rate hike by the Federal Reserve was offered by Didar Bekbauov, Founder and CEO of Bitcoin group mining company Xive, who noted that “Bitcoin is retesting a new weekly high following the 2.12% growth that has helped the premier coin regain its price above $29,000.”
According to Bekbauov, the selloff witnessed yesterday highlights the anxiety being experienced by institutional investors who are trying to navigate market volatility driven by concerns about the health of the global economy.
“Just after the US Federal Reserve unveiled its 10th interest rate hike of 25 BPS, the market reacted by tumbling, confirming the fears institutional has about the economy that made them sell off their BTC bags,” Bekbauov said. “The current recovery is not a surprise considering the market has a propensity to reverse its course on the back of its volatility.”
Bekbauov added that while the market is not expecting an extended selloff by institutional investors, there are other headwinds that could trigger some holders to derisk in the short term, but the long-term outlook is positive.
“The price of Bitcoin is poised to close Q2 at a price not less than $35,000,” he said. “The basis upon which this growth will be hinged rests on the generally accepted belief by Bitcoin ideologists, including myself, that the coin will soon assume a crucial role in the future of money and its embrace as the leading cryptocurrency. As I've deliberately chosen to adhere to long-term strategies for crypto investments, like many industry professionals, I see Bitcoin as the first choice to meet long-term investment goals".
As for what price point could signal the next leg up for Bitcoin, market analyst Michaël van de Poppe posted the following tweet, noting the sideways nature of the current market and highlighting a price target of $29,200.
#Bitcoin is pretty much stuck in between. Bulls are happy, bears are happy and finding arguments.— Michaël van de Poppe (@CryptoMichNL) May 4, 2023
I would say that a break above $29.2K and definite confirmation through a retest, that' my trigger for new highs.
Banks failing, how hard it may sound, is actually bullish for… pic.twitter.com/hu4vWqQxZa
Altcoin market split evenly
The altcoin market was pretty evenly split in terms of winners, losers, and the magnitude of the price change for either group on Thursday as crypto traders await the next major price move from BTC.
Daily cryptocurrency market performance. Source: Coin360
Noteworthy performances include a 27% gain for Radicle (RAD) and a 10.72% gain for Open Campus (EDU), while Core (CORE) was the hardest-hit project in the top 200, falling 9.3%, followed by iExec RLC (RLC), which suffered a 6.2% price decline.
The overall cryptocurrency market cap now stands at $1.05 trillion, and Bitcoin’s dominance rate is 38%.