Bitcoin on Verge of Breakout Towards $30K
The world’s largest cryptocurrency by market capitalization looks like it could be on the verge of a breakout towards the psychologically important $30,000 level and perhaps on towards the next major resistance zone around $32,500-$33,000. Traders are looking ahead to Wednesday’s US Federal Reserve policy meeting as the next potential bullish catalyst.
Bitcoin Market is Very Hot Right Now
In wake of the recent surge from earlier monthly lows under $20,000 to current levels above $28,000, Bitcoin’s 14-Day Relative Strength Index (RSI) score has leapt from oversold territory to overbought territory (defined as above 70). Bitcoin’s RSI was last around 71.5. Elsewhere, Bitcoin is trading at historically significant levels of elevation versus many of its major moving averages.
- Bitcoin looks set for a breakout towards $30K.
- Traders are awaiting Wednesday’s US Federal Reserve policy meeting for further catalysts.
- Metrics point to the Bitcoin market having become very hot.
According to technical analysts looking at the Bitcoin market on a short-term time horizon, the world’s largest cryptocurrency by market capitalization looks like it could be on the verge of a breakout towards the psychologically important $30,000 level and perhaps on towards the next major resistance zone around $32,500-$33,000. Looking at BTC/USD on the four-hour candlesticks, a bullish ascending triangle pattern appears to have formed. These technical patterns often form ahead of bullish breakouts.
Though bulls be warned – Bitcoin formed a similar pattern between the 16th and 21st of February but failed to break higher (in the immediate future anyway), and instead spent the next few weeks pulling lower again. Traders are looking ahead to Wednesday’s US Federal Reserve policy meeting as the next potential bullish catalyst. The bank is expected to lift interest rates by a further 25 bps to the 4.75-5.0% range, but there is a chance they could hold amid concerns about cracks appearing in the US banking system.
Analysts have argued that whatever the outcome (i.e. hawkish or dovish), Bitcoin could benefit. On one hand, a hawkish Fed could worsen bank crisis and further spur safe-haven appeal for Bitcoin (this has been key tailwind for Bitcoin in recent weeks). On other hand, dovish Fed could result in financial conditions easing which also boost Bitcoin (and broader crypto markets).
Hot Metrics Suggest Market Might Be Getting Too Hot
While many bulls feel confident in near term outlook might wise temper expectations further short term gains given number metrics point bitcoin market has become hot.. In wake recent surge monthly lows under 20k 28k current levels bitcoin 14 day relative strength index score leapt oversold territory overbought defined above 70 bitcoin rsi around 715 does necessarily mean can’t keep pushing higher 10th rsi pushed overbought proceed rally 17500 230000 month anyway elsewhere bitcoin trading historically significant levels elevation versus major moving averages btc usd 18 up 21 day moving average dma 19 200 day moving average dma 1870 average directional movement index adx rising suggests trend strengthening however macd histogram falling indicates momentum fading trend continuing may depend how react fed announcement wednesday p >< br />