Bitcoin’s rally partially offsets some FUD losses from the Binance event, but popular traders aren’t optimistic. While the BTC/USD trading pair is up more than 9% from its March 28 lows, it has sparked more skepticism than excitement as it returns to local highs.
A break above the $30,000 mark will change traders’ optimism
Faced with the ongoing FUD events in the market, the Bitcoin price quickly regained lost ground in record time. On March 29, BTC hit $28,650 on Bitstamp — just $200 shy of a new nine-month high.
However, unlike in the past, in the current situation, the sentiment among market participants is decidedly risk-off. Among them is the famous trader Muro, who has argued that the recovery has come from traders who specialize in block trades and is nothing more than a product of their strategies.
“Essentially, the big guys took the price back to their nearest short-term buy point (red) through profit-taking,” commented Muro, next to the BTC/USDT perpetual futures chart. Only dare to try short trades with small risks.”
BTC/USDT Perpetual Contract Comments | Source: Muro/Twitter
Others are looking at longer time frames to predict where bitcoin’s rally might break within its current trading range.
The area around $28,000 has historically been the most active volume zone, so trying to turn it from resistance to support requires extraordinary strength.
“Which is more important, a partial weekly breakout on a multi-month scale, or a retest of the most important supply area of the past 2 years as we face various headwinds?” argued trader and analyst Cantering Clark. “I will only add if BTC is above $30k. In a trending market, there is nothing wrong with buying a bit higher. Until then, respect resistance and positions will accommodate that.”
Trader and analyst Josh Rager agrees with this argument, adding that the BTC/USD chart shows the importance of ranges.
BTC/USD chart with caption | Source: Josh Rager/Twitter
China intraday liquidity triggers macro uptrend
The BTC/USD pair is trading at $28,368 after breaching the $29,100 mark. The opening on Wall Street provided some extra momentum, even as U.S. stocks were trending higher.
However, the Tedtalksmacro account noted that the PBOC resumed liquidity injections — a potentially significant event given the cryptocurrency market’s sensitivity to central bank liquidity.
Chinese data in “all fake basket”? Or is this measure specific?
It would be awesome if you could demonstrate that, really.
— tedtalksmacro (@tedtalksmacro) March 29, 2023
All eyes are now on key macro data from the US due later in the week.
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mango
As reported by Cointelegraph
