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BTC Target $29,000 Amidst Easing Binance and Deutsche Bank Jitters

By:
Bob Mason
Published: Mar 25, 2023, 00:20 UTC

It was a bearish Friday session for BTC, with Binance and Deutsche Bank weighing on investor sentiment. Regulatory activity will need monitoring today.

BTC technical analysis - FX Empire

In this article:

Key Insights:

  • It was a bearish Friday, with BTC falling by 2.98% to end the day at $27,461.
  • Fears of a Deutsche Bank collapse and Binance dragged BTC and the broader crypto market into negative territory.
  • However, the technical indicators remain bullish, with $30,000 still in view.

On Friday, bitcoin (BTC) fell by 2.98%. Partially reversing a 3.87% rally from Thursday, BTC ended the day at $27,461. Despite the bearish session, BTC avoided sub-$27,000 for the second consecutive session.

A mixed start to the day saw BTC rise to an early high of $28,376 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $29,019, BTC fell to a late low of $27,000. BTC briefly fell through the First Major Support Level (S1) at $27,341 before ending the day at $27,461.

Banking Sector Jitters and Binance Send BTC into Negative Territory

It was an eventful end to the week for the crypto market, with Binance in the spotlight.

Reports of Binance employees assisting users evade KYC controls created the fear of more regulatory scrutiny of the world’s largest exchange. Things went from bad to worse as investors responded to news of Binance suspending deposits and withdrawals because of a technical glitch.

The news of Binance resuming deposits and withdrawals failed to provide investor comfort.

Away from the digital asset space, the banking sector also tested buyer appetite. On Friday, Deutsche Bank (DB) became the latest European bank to suffer at the hands of banking jitters. Deutsche Bank ended the day with an 8.53% loss despite assurances from lawmakers that the bank is profitable.

The bearish sentiment led to BTC decoupling from the NASDAQ Composite Index, which rose by 0.31%. Better-than-expected private sector PMIs from the US failed to deliver BTC comfort. According to prelim figures, the Services PMI increased from 50.6 to 53.8 in March versus a forecasted 50.5.

NASDAQ correlation
NASDAQ – BTCUSD 250323 Hourly Chart

The Day Ahead

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) remain on the radar.

However, banking sector-related news will also influence investor sentiment, with no economic indicators for investors to consider.

Bitcoin (BTC) Price Action

This morning, BTC was flat at $27,462. A range-bound start to the day saw BTC fall to an early low of $27,444 before steadying.

BTC holds steady.
BTCUSD 250323 Daily Chart

Technical Indicators

BTC needs to move through the $27,612 pivot to target the First Major Resistance Level (R1) at $28,225 and the Friday high of $28,376. A return to $28,000 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 $28,988 and resistance at $29,000. The Third Major Resistance Level (R3) sits at $30,364.

Failure to move through the pivot would leave the First Major Support Level (S1) at $26,849 in play. However, barring another crypto event-fueled sell-off, BTC should avoid sub-$26,500 and the Second Major Support Level (S2) at $26,236. The Third Major Support Level (S3) sits at $24,860.

BTC support levels in play below the pivot.
BTCUSD 250323 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. BTC sat above the 50-day EMA ($27,131). 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 ($27,131) would support a breakout from R1 ($28,225) to target R2 ($28,988) and $29,000. However, a fall through the 50-day EMA ($27,131) and S1 ($26,849) would give the bears a run at S2 ($26,236). A fall through the 50-day EMA would send a bearish signal.

EMAs are bullish.
BTCUSD 250323 4 Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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