BTC Bulls Target $31,500 on Bullish Larry Fink Chatter
- On Wednesday, BTC fell by 0.97% to end the day at $30,567.
- Recessionary jitters, hawkish FOMC meeting minutes, and Binance-related news weighed.
- However, the technical indicators remain bullish, signaling a return to $32,500.
On Wednesday, bitcoin (BTC) fell by 0.97%. Following a 1.15% loss on Tuesday, BTC ended the day at $30,567. The bearish session left BTC short of the $31,000 handle for the first time in three sessions.
A bullish start to the day saw BTC rise to an early morning high of $30,945. BTC stayed above the 50-day EMA and the lower level of the $30,750 – $31,250 resistance band before hitting the reverse. The reversal saw BTC fall through the lower level of the resistance band and through the 50-day EMA to an early afternoon low of $30,286.
However, BTC found late support to move back through the 50-day EMA to end the day at $30,567.
Bitcoin (BTC) Price Action
This morning, BTC was up 0.93% to $30,852. A mixed start to the day saw BTC fall to an early low of $30,366 before rising to a high of $30,865.
The Daily Chart showed a BTC/USD fall below the psychological $31,000 support level. However, BTC/USD remained above the 50-day ($28,694) and 200-day ($26,190) EMAs, signaling bullish momentum over the near and long term.
Notably, the 50-day EMA continued to pull away from the 200-day EMA and reflected bullish momentum.
Looking at the 14-Daily RSI, the 64.04 reading signaled a bullish outlook and aligned with the 50-day and 200-day EMAs, supporting another run at the higher level of the $30,000 – $31,250 resistance band.
Looking at the 4-Hourly Chart, the BTC/USD faces strong resistance at the $31,000 psychological level. BTC/USD sits above the 50-day ($30,587) and 200-day ($29,055) EMAs, sending bullish near-term and longer-term signals. Significantly, the 50-day EMA pulled away from the 200-day EMA, signaling another test of the higher level of the $30,000 – $31,250 resistance band.
BTC/USD should avoid a fall through the lower level of the resistance band and the 50-day EMA ($30,587) to break out from $31,250 and target $32,000.
The 14-4H RSI reading of 54.01 indicates a bullish stance and aligns with the EMAs, with buying pressure outweighing selling pressure. Significantly, the RSI signals near-term bullish momentum and supports a breakout from $31,250.
Recessionary Fears and Binance Woes Tested Buyer Appetite
It was a quiet Wednesday session, with investors brushing aside US factory orders ahead of the FOMC meeting minutes. Hawkish FOMC meeting minutes weighed the appetite for riskier assets, including BTC and the broader crypto market.
Earlier in the day, service sector PMIs from China and Europe and Binance-related news set a bearish tone ahead of the afternoon session.
On Wednesday, news hit the wires of the Australian Securities & Investments Commission (ASIC) investigating Binance’s Australian derivatives business. The Australian regulator reportedly searched the Binance offices. The latest regulatory probe follows increased scrutiny by regulators in Europe as governments and regulators respond to the SEC filing against Binance.US, Binance, and Binance CEO CZ.
The Day Ahead
It is a busy Thursday session, with the US economic calendar likely to affect investor sentiment this afternoon.