Bitcoin (BTC) may have erased its Binance “FUD” losses, but popular traders are anything but bullish.
Despite gaining as much as 7.5% off its March 28 lows, BTC/USD is causing more suspicion than excitement with its return to local highs.
$30,000 Holds as Dealer for Bullish Sentiment Turnaround
In a move that echoes its reactions to previous news events like the demise of Silicon Valley Bank, Bitcoin has recouped flash losses in record time.
On March 29, BTC price action hit $28,650 on Bitstamp, just $200 off new nine-month highs.
Unlike before, however, the mood among market participants is clearly one of risk aversion under current conditions.
Among them is popular trader Wall, who argued that the bounce came courtesy of high-volume traders and was nothing more than a product of their strategies.
“The big guys basically drove the price back to their recent short entry (red) by taking profits,” he said. commented along with a chart of BTC/USDT perpetual futures.
“I am definitely not optimistic. Go short small risk again.”
Related: US Enforcement Agencies Are Turning Up the Pressure on Crypto-Related Crimes
Others looked to longer time frames to justify Bitcoin at least taking a breather in its current trading range.
Historically, the area around $28,000 has been the most active in terms of volume, and attempts to turn it from resistance to support require exceptional strength.
“Which is more important, the local weekly breakout of a multi-month range or the most important supply zone retest in the last 2 years as we face all sorts of headwinds?” trader and analyst Cantering Clark argument.
“I will be as optimistic as all the carnival barkers when we are above 30k. Also, not surprisingly, in trending markets there should be nothing wrong with buying higher. Until then, respecting the resistance and positioning accordingly.”
Trader and analyst Josh Rager agreedadding a BTC/USD chart showing the importance of the range.
China liquidity among the macro triggers of the day
Meanwhile, BTC/USD was trading at $28,300 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView.
Related: Bitcoin Price Rises Above $28K After 1.5K BTC Shorts “Burst”
The Wall Street open for the day offered little additional momentum, despite US stocks trending higher.
Nonetheless, the Tedtalksmacro analysis account noted the resumption of liquidity injections from China’s central bank, a potentially key event given the susceptibility of crypto markets to central bank liquidity.
The Central Bank of China is adding liquidity again.
The largest injections through a reverse repository in a month. pic.twitter.com/94NHc7lMCk
— tedtalksmacro (@tedtalksmacro) March 29, 2023
As Cointelegraph reported, all eyes remain on the US for the release of key macroeconomic data later this week.
The views, thoughts, and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
