Bitcoin (BTC) Rejects Bears, Resistance at $29k

bitcoin chart
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Bitcoin price is up 8% in the last week of trading and soaking the selling pressure of the past 24 hours.

After concerns on March 22, the coin bounced back strongly yesterday, reversing losses and pushing back prices above $28k.

Technically, the coin remains under pressure in the short term. There could be more gains should there be a strong, high volume close above the current consolidation.

From the daily chart, critical support remains at $25k while there could be more gains in short to medium term towards $32k in a bullish continuation formation.

Any expansion with rising volumes above $30k would accelerate the leg up towards Q1 2022 territory in the near term.

Fed Raises Interest Rates to 5%

The coin’s continued expansion is amid news that the United States Federal Reserve (Fed) raised interest rates to 5% mid this week. Economists expected this to happen.

However, the move could be the last this year since inflation is dropping and banks are exposed.

Though Jerome Powell and the FOMC are buoyant, saying the United States banking system is robust; events of the past few weeks are contrary to their stance.

Silicon Valley Bank (SVB) is one of the three banks to fall, causing a contagion that shook the United States banking infrastructure and forcing the Fed to set up credit lines for impacted banks.

The Treasury Department also assured depositors they would be covered, an intervention that calmed down nerves preventing a bank run. Bitcoin has since been higher.

Bitcoin Price Analysis

Bitcoin Daily Chart For March 24
From the daily chart, the path of least resistance is northwards. Notably, the coin is within a bullish breakout formation, racing above February highs at $25k.

As such, February highs and $25k are key reaction levels. In the short term, resistance is around $29k, or March 22 highs.

Even though prices are higher, the bearish engulfing bar of mid this week is a concern. It is wide-ranging and has high trading volumes.

Any dip below $26.6k may see BTC contract to $25k and February highs in a retest.

However, any breakout above $29k with equally rising volumes may spark demand, forcing BTC towards $30k, a psychological target, and later $32k.

Technical charts courtesy of Trading View.

 Disclaimer: Opinions expressed are not investment advice. Do your research.

If you found this article interesting, here you can find more  Bitcoin news.


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