BTC Bulls Eye the $29,000 Handle with US Stats and Fed Chatter in Focus

Key Insights:

• It was a bullish Thursday, with BTC rallying by 3.87% to end the day at $28,304.
• US Treasury Secretary Janet Yellen played a hand in delivering a bullish session for the NASDAQ Composite Index, which supported a BTC rally.
• The technical indicators remain bullish, with $30,000 still in view.

On Thursday, bitcoin (BTC) rallied by 3.87%. Reversing a 3.07% slide from Wednesday, BTC ended the day at $28,304. BTC held onto the $28,000 handle for the second time in three sessions.

A mixed start to the day saw BTC fall to an early low of $27,094. Steering clear of the First Major Support Level (S1) at $26,288, BTC surged to a mid-afternoon high of $28,772. BTC broke through the First Major Resistance Level (R1) at $28,515 before easing back to end the day at $28,304.

Banking Sector Jitters and Janet Yellen Assurances Deliver Support

Investor angst over the banking sector resurfaced on Thursday. The Fed raised interest rates by 25 basis points on Wednesday. While Fed Chair Powell insinuated a likely pause to assess the impact of tightening monetary policy on the banking sector and the economy, the decision to lift rates raised fears of further banking sector woes.

US Treasury Secretary Janet Yellen calmed market nerves, assuring investors that bank deposits were safe and that policymakers have the tools to tackle a banking crisis.

Speaking at the House of Representatives Appropriations subcommittee hearing, the former Fed Chair reportedly said,

“The strong actions we have taken to ensure that Americans’ deposits are safe. Certainly, we would be prepared to take additional actions if warranted.”

The NASDAQ Composite Index rose by 1.01% on Thursday, with the Dow and S&P 500 seeing gains of 0.23% and 0.30%, respectively. This morning, the NASDAQ mini was up 5.75 points.

The Day Ahead

It is a busy day ahead on the US economic calendar. US private sector PMIs for March and core durable goods orders will draw interest. We expect the Services PMI to influence the NASDAQ Composite Index and BTC.

FOMC member James Bullard will also move the dial this afternoon.

However, investors should monitor the crypto news wires for updates from the ongoing SEC v Ripple case and regulatory and lawmaker activity. Binance and Coinbase (COIN) are on the radar.

Bitcoin (BTC) Price Action

This morning, BTC was up 0.10% to $28,333. A range-bound start to the day saw BTC rise to an early high of $28,340 before easing back.

Technical Indicators

BTC needs to avoid the $28,057 pivot to target the First Major Resistance Level (R1) at $29,019. A move through the Thursday high of $28,772 would signal an extended bullish session. The crypto news wires and the US economic indicators should be crypto-friendly to support an extended rally.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $29,735 and resistance at $30,000. The Third Major Resistance Level (R3) sits at $31,413.

A fall through the pivot would bring the First Major Support Level (S1) at $27,341 into play. However, barring a crypto event-fueled sell-off, BTC should avoid sub-$27,000 and the Second Major Support Level (S2) at $26,379. The Third Major Support Level (S3) sits at $24,701.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. BTC sat above the 50-day EMA ($26,965). The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA moving away from the 200-day EMA, sending bullish signals.

A hold above the 50-day EMA ($26,965) would support a breakout from R1 ($29,019) to target R2 ($29,735) and $30,000. However, a fall through S1 ($27,341) and the 50-day EMA ($26,965) would give the bears a run at S2 ($26,379). A fall through the 50-day EMA would send a bearish signal.