Bitcoin (BTC) faces a choice between two major levels as part of a “macro trend-setting range,” the analysis says.
At Twitter survey on March 27, monitoring the Indicator Material source said that BTC price action is now in the critical trading zone.
The market is hinting that “the big move is coming”
Bitcoin has managed to withstand a new wave of negative news involving the largest global exchange Binance.
While commentators argue that United States regulatory action against Binance US may be limited, concerns remain that BTC/USD will fail to continue its upward momentum.
With the close of each key month coming, the Material Indicator identifies two important levels for bulls to protect and overcome, respectively.
This is the 200-week moving average (WMA) to the downside and $30,000 to the upside. While it is known, recent surveys now show that market sentiment favors a retest of support.
#Bitcoin literally in the MACRO Trend defines some.
Technical Support at the 200 Week Moving Average is currently ~$25,550, and resistance at $30k
What do you think happened first?
– Material Indicator (@MI_Algos) March 28, 2023
“When the market seems indecisive it is often a sign that a big move is coming,” Material Indicator added in the comment section further.
“Expect the 200 Weekly Moving Average to be tested before reaching the Weekly close, possibly before the Monthly close on Friday.”
The accompanying chart shows the BTC/USD order book on Binance with bid and ask liquidity clusters.
Traders and analysts Rekt Capital continue to compare the current behavior of Bitcoin and its movements from the cross-market crash of COVID-19 in March 2020 when it lost the 200 WMA as support.
Related: U.S. enforcement agencies turn up the heat on crypto-related crimes
“Finally, BTC repeated the downside wicking depth of March 2020 below MA 200. $BTC deviated by -28% to reach the price point ~$15500. Since then $BTC has rallied +90% from the bottom,” he summarized in the day.
“Currently, BTC can be dipped in an attempt to recover the 200-week MA as support.”
Where is the volatility?
In the midst of the Binance debacle, others have also stepped up to argue that Bitcoin and crypto in general have done well given the various destabilizing events that have emerged in recent weeks.
Related: Will BTC break the bear market? 5 things to know in Bitcoin this week
We have experienced the following in the past month:
• 2nd & 3rd Largest bank failure in US history
• Credit Suisse essentially bailed out
• Federal Reserve + 0.25% rate hike
• ECB + 0.5% rate hike
• 2 major crypto banks shut down
• Coinbase issues Wells news
• CZ & Binance… pic.twitter.com/TY7DN6QjcY— Caleb Franzen (@CalebFranzen) March 28, 2023
Caleb Franzen, senior market analyst at Cubic Analytics, further noted that macro market volatility remains low.
“What will break the camel’s back? Did it even break?” they inquire.
“For now, nothing is producing material downward pressure for the overall market (equity or crypto)…”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.