4 - 7 minute read
Bitcoin’s (BTC) recent momentum appears to have paused below $30,000 after the asset capitalized on trouble in the traditional finance sector, especially the fallout from the banking crisis. Analysts maintain that breaching the $30,000 resistance level will likely be monumental for the maiden cryptocurrency based on historical price movement.
Bitcoin’s Resistance at $30,000
In particular, crypto analyst Matthew Hyland observed in a tweet on April 2 that $30,000 has acted as Bitcoin’s significant resistance and support level for the last two years. Therefore, the analyst projected that if Bitcoin managed to flip the position, it could potentially mean a “whole new ballgame.”
“Bitcoin has been consolidating below the biggest resistance/support of the last 2+ years. A whole new ballgame if BTC breaks it,” he said.
Similarly, a Bitcoin analyst by the Twitter pseudonym Stockmoney Lizards called for patience in the crypto market, noting that the asset faces resistance at $30,000. He also suggested that if the resistance is breached, Bitcoin will likely skyrocket.
Bitcoin’s momentum stalls
Indeed, Bitcoin’s rally has stalled in the wake of renewed regulatory concerns in the crypto market. The latest incident saw the United States Commodity Futures Trading Commission (CFTC) suing Binance for allegedly breaking trading and derivatives rules.
Following the scrutiny, Binance pointed out that it does not agree with the characterization of many of the issues alleged in the complaint.
Meanwhile, Bitcoin’s price trajectory in 2023 has elevated the asset to emerge as the best-performing asset class. The crypto gained approximately 70%, beating traditional finance products such as gold and the Nasdaq 100 index.
With a focus on Bitcoin’s next price movement, the odds seem to favor the possibility of hitting $30,000 in the coming weeks. As per a Finbold report, machine learning platform PricePredictions forecasts that Bitcoin can trade at $30,697 on April 30, 2023.
Bitcoin’s Price Analysis
By press time, Bitcoin was valued at $28,441 with daily losses of about 0.05%. On the weekly chart, BTC is up over 2%.
Despite Bitcoin hitting a minor barrier on the daily chart, the asset’s one-day technical analysis retrieved from TradingView is dominated by bullishness. A summary of the gauges recommends “buy” at 13, while moving averages are for the “strong buy” sentiment with a score of 13. For oscillators, they recommend selling gauging at 2.
Bitcoin’s Options Contracts
The bullish sentiments are also backed by activity around Bitcoin’s options contracts. Finbold reported on March 31 that investors were flocking to trade in Bitcoin and Ethereum (ETH) following a spike of about 430% in the opened interest year-over-year basis.
Advice to Traders
The recent surge in Bitcoin’s price has been a hot topic in the cryptocurrency market. Traders and investors are keenly watching the asset’s price movements, with many waiting to see if the resistance at $30,000 will be breached.
While there is optimism that Bitcoin will hit $30,000 in the coming weeks, it is important to note that trading carries high risk. It is crucial to conduct due diligence and make informed decisions when trading.
If Bitcoin manages to break the $30,000 resistance, it could potentially mean a whole new ballgame for the cryptocurrency. However, it is important to keep a close eye on the market and make informed decisions when trading. As always, it is important to remember that we are not financial advisors and trading carries high risk.