Bitcoin (BTC) hit fresh month-to-date lows overnight on April 4 as fresh rumors about the biggest exchange Binance spooked fragile markets.
BTC Price Returns to $28,000 After Weekly Low
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD fell to $27,240 on Bitstamp.
At its lowest level since March 28, the performance followed an outbreak of claims that Binance CEO Changpeng “CZ” Zhao has already under investigation by US regulators, he is now wanted by Interpol.
The claims stemmed from an accidental leak of an encrypted tweet by the private Twitter account Cobie, which appeared to lack evidencewhich resulted in a market rally.
Now trading above $28,000 at the time of writing, Bitcoin was showing “classic” behavior, according to Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight.
“Classic Bitcoin sweep,” he said. summarized.
Van de Poppe also referred to the macroeconomic climate, specifically the possible end of interest rate hikes by the United States Federal Reserve.
“The trend remains up as we are in a ‘relief’ vacuum as the ramp up comes to an end,” he continued.
“Most likely, we will see Bitcoin continue to $40K, but if we get a test of $25K first, I will be a buyer.”
A subsequent tweet stated that the local lows were “swept away” by BTC/USD, with $30,000 as the target.
The bass has swept #Bitcoin.
Going higher again, as long as $27,900 holds, I will look for a continuation to the range high and potentially $30,000. pic.twitter.com/dY89M95LLF
—Michael van de Poppe (@CryptoMichNL) April 4, 2023
Such optimism was shared elsewhere, including trading resource Stockmoney Lizards, which joined calls for $30,000 to hit after a “short correction.”
Short fix, then 30k pic.twitter.com/vWf6PqHZie
— Stockmoney Lizards (@StockmoneyL) April 4, 2023
Related: US Enforcement Agencies Are Turning Up the Pressure on Crypto-Related Crimes
Looking at the breakeven level (EQ) of the current range at $27,700, Crypto trader Tony also remained bullish.
“Maintaining that EQ like a champ. There are no short coverings unless we close solidly below that level, but for now we remain in the upper half of the range,” he said. said followers in the day.
US recession just around the corner?
On the macro front, changes were also afoot, with the weekend announcement of an oil production cut by the Organization of the Petroleum Exporting Countries, plus 10 other oil-producing nations, combined with economic data. US weaknesses that put pressure on the dollar.
Related: Bitcoin Breakout ‘Matter Of Time’ Says Analysis With BTC Price At $28K
The US Dollar Index (DXY) was below the 102 mark at the time of writing.
For trading firm QCP Capital, the writing is now on the wall when it comes to an impending recession.
“USD and bond yields, both drivers of BTC, reversed sharply lower last night following the ISM Manufacturing release, which showed the steepest contraction since April 2020 (amid the pandemic),” he wrote in your last market. update released on April 4.
“We expect more weak US data to be released this week, further cementing the recession narrative. After many false dawns, we believe that this will be the lasting one.”
He noted that despite Bitcoin’s potential to profit from chaos, as with last month’s banking crisis, it remained “untested” as a safe haven during a recession.
“If the Federal Reserve were to act quickly in a downturn, just as it did during last month’s banking crisis, we expect BTC to go back to the moon,” he continued.
“However, in a stagflationary environment, if the Fed feels it cannot cut rates until inflation has reached its target again, will BTC follow risk assets to the downside? That remains to be seen. While BTC is not tested as an inflation hedge, it is definitely the highest beta currency irresponsibility hedge out there.”
As Cointelegraph reported, rising oil prices were initially thought to risk a return of inflationary forces, allowing the Federal Reserve to continue its rate hikes.
The views, thoughts and opinions expressed here are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
