Crypto markets were down on Wednesday during the early hours in Asia. Bitcoin was able to make some gains where Ethereum posted a big fall on the eve of its Shapella Upgrade. Traders keenly awaited the US inflation numbers later in the day for the monetary policy pathway in the days to come.
After lingering near a macro-Fib resistance of around $28,000 for more than three weeks, Bitcoin (BTC) has finally surpassed the critical $30,000 mark in the past few days, giving a strong boost to the bulls.
With no significant resistance immediately ahead, BTC seems well-positioned to challenge the next Fib resistance close to $32,000 in the days to come. Moreover, the robust support provided by the 0.38 Fib level at $28,000 serves as a safety net, instilling confidence in the bulls to keep pushing BTC higher.
An ascending trendline, in play since October last year, would offer additional reassurance. An optimistic outlook could see BTC testing the golden pocket at $35,722 if the current bull run continues.
However, it’s worth noting that BTC’s RSI is currently around 80 – clearly overbought. If a correction does occur, BTC could potentially fall to its 50-day moving average near the $25,500 mark.
Resistance: $31,875, $35,725, $37,100
Support: $28,000, $25,694, $23,200(Views and recommendations given in this section are the analysts’ own and do not represent those of Business Today. Please consult your financial adviser before taking any position in the asset/s mentioned.)