Bitcoin (BTC) faces a choice between two key levels as part of a “macro trend-defining range,” the analysis says.
In a Twitter poll on March 27, tracking material resource indicators saying that BTC price action was now in a critical trading zone.
The market gives clues that “a great movement is coming”
Bitcoin has managed to weather a new wave of negative news involving the largest global exchange, Binance.
While commentators argue that the consequences of the United States regulatory action against Binance.US may be limited, concerns remain that BTC/USD will not be able to continue its upward momentum.
With a key monthly close approaching, material indicators identified two important levels for bulls to protect and break above.
These are the 200-week moving average (WMA) to the downside and $30,000 to the upside. While it is already known, a new survey now shows that market sentiment favors a retest of support first.
#Bitcoin it is literally in a MACRO trend-defining range.
Technical support at the 200-week moving average is currently at ~$25,550 and resistance is at $30k
In your opinion, what happens first?
— Material indicators (@MI_Algos) March 28, 2023
“When the market looks indecisive, it is often a clue that a big move is coming,” Material Indicators added in part of an additional comment.
“We expect the 200-week moving average to be tested before we hit the weekly close, possibly even before the monthly close on Friday.”
An accompanying chart showed the BTC/USD order book on Binance with associated bid and ask liquidity pools.
Meanwhile, trader and analyst Rekt Capital continued to draw comparisons to Bitcoin’s current behavior and its movements since the COVID-19 cross-market crash in March 2020, when it briefly lost the 200 WMA as support.
Related: US Enforcement Agencies Are Turning Up the Pressure on Crypto-Related Crimes
“In the end, BTC repeated its March 2020 downside absorb depth below 200 MA. $BTC deviated by -28% to reach the price of ~$15500. Since then, $BTC is up 90% from the lows,” he said. summarized up to date.
“Now, BTC may be dipping in an effort to recapture the 200-week MA for support.”
Where is the volatility?
Meanwhile, in the midst of the Binance debacle, others have walked away to argue that both Bitcoin and cryptocurrencies in general have done extremely well, given the variety of disruptive events that have surfaced in recent weeks.
Related: Will BTC Leave the Bear Market? 5 things to know about Bitcoin this week
We have been through the following in the last month:
• Second and third largest bank failures in US history.
• Credit Suisse essentially bailed out
• Federal Reserve +0.25% rate hike
• ECB +0.5% rate hike
• Closing of 2 important crypto banks
• Coinbase issued a notice from Wells
• CZ and Binance… pic.twitter.com/TY7DN6QjcY—Caleb Franzen (@CalebFranzen) March 28, 2023
Caleb Franzen, Senior Market Analyst at Cubic Analytics, further noted that macro market volatility remained comparatively low.
“What will be the last straw? Will it even break? he consulted.
“So far, nothing has produced material downward pressure for the broader market (equities or cryptocurrencies)…”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
