BTC in the Need of a Catalyst to Breakdown Resistance at $28,000

Key Insights:

• It was a bullish Saturday, with BTC rising by 0.06% to end the day at $27,478.
• There were no crypto events to provide direction as investors considered the market events from the week.
• The technical indicators remain bullish, with $30,000 still in view.

On Saturday, bitcoin (BTC) rose by 0.06%. Following a 2.98% loss from Friday, BTC ended the day at $27,478. Despite the bullish session, BTC fell short of the $28,000 handle for the first time in seven sessions.

After a range-bound morning, BTC rose to a mid-afternoon high of $27,810. Falling short of the First Major Resistance Level (R1) at $28,225, BTC fell to a late low of $27,164. Steering clear of the First Major Support Level (S1) at $26,849, BTC revisited the $27,500 handle before easing back.

Bitcoin Steadies Despite Lingering Headwinds

After a busy Friday session, there were no crypto events or external market forces to guide investors on Saturday.

The lack of events left BTC within a $650 range on Saturday as investors digested the events from the week.

An increasingly active SEC through regulation by enforcement and anti-crypto sentiment in the White House leaves crypto America in a precarious position. However, hopes of a Ripple victory in the SEC v Ripple case could materially change the landscape.

Easing fears of a Deutsche Bank (DB) collapse also provided crypto price support. There were no emergency meetings or calls by government officials for emergency assistance to avert the demise of a profitable and well-capitalized bank. The silence likely delivered investor comfort.

However, headwinds linger, with Binance and Coinbase (COIN) under intensifying regulatory scrutiny. The is also the ever-present threat of a European bank collapsing in the wake of the Silicon Valley Bank and Signature Bank bankruptcies. With investors considering Europe a crypto-friendly continent, a regional financial crisis could affect investor appetite.

The Day Ahead

Updates from the ongoing SEC v Ripple case and regulatory and lawmaker activity will be focal points. Binance and Coinbase (COIN)-related news also needs consideration.

However, investors should continue to monitor the news wires for banking sector-related news, which could test bitcoin’s newly discovered safe-haven status.

Bitcoin (BTC) Price Action

This morning, BTC was down 0.04 at $27,466. A range-bound start to the day saw BTC rise to an early high of $27,493 before easing back.

Technical Indicators

BTC needs to move through the $27,484 pivot to target the First Major Resistance Level (R1) at $27,804 and the Saturday high of $27,810. A return to $27,500 would signal an extended bullish session. The crypto news wires 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 $28,130 and resistance at $28,500. The Third Major Resistance Level (R3) sits at $28,776.

Failure to move through the pivot would leave the First Major Support Level (S1) at $27,158 in play. However, barring a crypto event-fueled sell-off, BTC should avoid sub-$26,500. The Second Major Support Level (S2) at $26,838 should limit the downside. The Third Major Support Level (S3) sits at $26,192.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. BTC sat above the 50-day EMA ($27,205). The 50-day EMA moved further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, sending bullish signals.

A hold above the 50-day EMA ($27,205) would support a breakout from R1 ($27,804) to target R2 ($28,130) and $28,500. However, a fall through the 50-day EMA ($27,205) and S1 ($27,158) would give the bears a run at S2 ($26,838). A fall through the 50-day EMA would send a bearish signal.