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(Kitco News) - The crypto market remains resilient in the midst of the spreading banking crisis as the efforts by governments to halt the contagion continue to be overwhelmed by the dire realities present in the global financial system, leading investors to take a closer look at cryptocurrencies.
U.S. equities managed to reverse their early losses on Friday to climb higher into the market close despite comments from St. Louis Fed President James Bullard that interest rates could continue to rise to 5.625% in the event that economic stressors begin to wane in the coming weeks. At the closing bell, the S&P, Dow and Nasdaq recorded gains of 0.56%, 0.41%, and 0.31%, respectively.
Data provided by TradingView shows that Bitcoin (BTC) remains in a consolidation pattern near support at $28,000, where it has been trading over the past week as investors have once again started turning to the top crypto for its safe-haven status.
BTC/USD 4-hour chart. Source: TradingView
A slowdown in momentum for Bitcoin was evident in the futures market, according to Kitco senior technical analyst Jim Wyckoff, who noted that “April Bitcoin futures prices are weaker in early U.S. trading,” in his morning Bitcoin update.
“The recent pause in price action, at higher levels, is not uncommon and not bearish,” Wyckoff said. “Bulls still have the solid near-term technical advantage amid a price uptrend still in place on the daily bar chart. More upside is likely in the near term.”
A pause before climbing higher
Multiple analysts agree with Wyckoff that the outlook for Bitcoin is positive, including Eight Global founder Michaël van de Poppe, who posted the following tweet as Bitcoin was retesting the highs near $29,000 suggesting that a pullback to $25,300 was a possibility before Bitcoin resumes its trek higher.
Yes, test of the highs it is for #Bitcoin after breaking $27,800.
— Michaël van de Poppe (@CryptoMichNL) March 23, 2023
Would like to see the area at $27,700 hold for continuation.
If lost, then I´d still be looking at $25,300-25,800 for longs before $40K.
Overall thesis remains like that. pic.twitter.com/LwGAhNUQxL
A look at what the price action for the top crypto may look like moving forward was provided by decentralized finance analyst Yoddha, who posted the following chart highlighting a fractal pattern that could see bitcoin rally to $50,000, pull back to $30,000, and then surge to new all-time highs.
$BTC
— Yoddha (@CryptoYoddha) March 24, 2023
We had exact number of days between previous top and bottom as of now.
If the plan plays out, we can expect:
$50.000 -> $30.000 -> ATH #Bitcoin pic.twitter.com/226ZJQQVDz
In an effort to prepare crypto investors for the volatile ride ahead, market analyst Rekt Capital posted the following tweet, highlighting the importance of keeping emotions in check when it comes to trading in the crypto market.
In the next months, there will be periods of both #BTC uptrending & downtrending price action
— Rekt Capital (@rektcapital) March 24, 2023
Just knowing that will make you less emotional about the moves that do happen
You don't have capitalise on all moves because there is always another opportunity$BTC #Crypto #Bitcoin
Altcoins consolidate
The altcoin market largely mirrored Bitcoin’s move into consolidation, with only a handful of tokens seeing price increases on Friday while the majority recorded slight losses.
Daily cryptocurrency market performance. Source: Coin360
OMG Network was the one double-digit gainer on the day, increasing 15.46% to hit a high of $2.14, while Helium (HNT) gained 9.3% and BinaryX climbed 7.51%.
The overall cryptocurrency market cap now stands at $1.158 trillion, and Bitcoin’s dominance rate is 46.4%.
