BTC is in full recovery mode after the 2022 crypto winter, during which the coin came dangerously close to being shut down completely. Despite the latest banking crisis putting the USD in peril, the price of BTC continues to soar.
However, the coin still needs some help, with buyers leaving and remaining bulls needing help to hold onto current prices. If bullish traders continue to struggle with resistance levels, there could be a massive change in trend. Nevertheless, there are strong indicators that if BTC breaks through these resistance levels, the cryptocurrency price could skyrocket and reach $30,000 or even higher.
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BTC On The Rise
BTC has already surged by more than 40% after leveraging the 200-day SMA to support its bounce. The bulls are currently consolidating at the $28,695 level as they aim to break through the resistance level at $30,000, with only 5% left to reach the target.
However, market events could impact the price further as the week progresses, with reactions to Credit Suisse and the Fed rate decisions expected to have ripple effects on the global market landscape. Bitcoin is currently seeing a wave of bullish sentiment, and despite ongoing concerns, traders are largely optimistic about the cryptocurrency’s outlook.
With Bitcoin trading in its sweet spot and the US yield and dollar declining, many analysts expect a significant inflow of buyers. As a result, despite numerous challenges, Bitcoin’s price is anticipated to continue on its upward trend and could see a 15% gain, reaching the $32,765 mark in this week’s trading.
As noted by Philip L., an analyst at FXstreet, one of the biggest advantages for BTC is the immense pressure on banking systems in the Eurozone and the United States. With the potential for systemic banking failures, there is a growing sentiment that Bitcoin may emerge as a viable alternative.
However, while this presents an opportunity for Bitcoin, it also highlights the need for the cryptocurrency to be viewed as a haven asset, capable of providing stability and security in times of financial turmoil.
One of the reasons for Bitcoin’s current bullish run is the support of many banks for crypto exchanges. However, as regulatory pressure mounts, many banks need more financial ways to cover the exchanges. The recent shutdown of Signature Bank further compounds this situation by regulators.
Analysts warn that this regulatory mood could result in the closure of more crypto-associated banks, potentially triggering a significant downside trend for BTC. If such a slump, Bitcoin could fall back to $20,000.
OnChain BTC Analysis
Based on the IOMAP data from IntoTheBlock, BTC holders are currently experiencing a profitable period, with 72% of holders in profit. This statistic implies the potential for network-wide profit-taking, which could lead to significant market movement.
If Bitcoin falls downward, the first support level could be $27,000. This movement is due to the coin’s support from new addresses recently purchasing 346,000 BTC units. However, if the price falls below the $27,000 level, it could trigger a massive rush toward the $24,500 level.
Alternatively, if the coin holders maintain their bullish momentum, we could see an uptick in the price above the $29,500 level, eventually reaching $30,000. If the bulls remain level-headed and push the price beyond $30,000, the coin’s price could skyrocket towards 11-month highs at the $39,000 level.