BTC/USD Gains 7.5% from March Lows
Bitcoin traders have expressed concerns despite the cryptocurrency’s recovery from Binance “FUD” losses. BTC/USD has gained 7.5% from its March 28 lows but traders remain suspicious of its potential to maintain its momentum. The return to local highs is causing more suspicion than excitement among market participants.
Recovery Cause for Skepticism
Bitcoin has recovered snap losses in record time, but the mood among traders remains risk-off. According to popular trader Muro, the bounce came from large-volume traders and is nothing more than a product of their strategies. Traders are looking towards longer timeframes and significant supply zones to make the case for Bitcoin.
Wall Street Offers Little Additional Momentum
At the time of writing, BTC/USD traded at $28,300, and Wall Street open offered little additional momentum. Tedtalksmacro noted the resumption of liquidity injections from China’s central bank while all eyes are on the US for the release of key macro data later this week.
The Resilience of Bitcoin Amidst Crypto Industry Collapse
Despite the collapse of the crypto market, Bitcoin has remained the gold standard in cryptocurrency. Its recent rally is attributed to concerns about the global banking system and expectations of an end to interest rate hikes. Bitcoin’s staying power is seen as evidence that it is different from other cryptocurrencies, and its maximalists defend it so vociferously that they are sometimes likened to a cult.
Bitcoin as Alternative Banking System
Bitcoin is considered by some as an alternative banking system in parts of the world with inconsistent or authoritarian banking systems. Its growing use in the human rights world as a way to facilitate the transfer of money outside the banking system has become invaluable. The need for Bitcoin is increasing among people in parts of the world where the banking system is unreliable or at the whim of an authoritarian.
Cryptocurrency Market Analysis Q1 2023
In Q1 2023, Bitcoin is up about 71%, showing positive sentiment and bulls attempting to put a bottom in Bitcoin after four consecutive quarters of negative returns. Negative news like Binance slapped with a lawsuit did not start a strong down move. Cryptocurrencies move up in a bullish environment without specific catalysts.
Potential Trends in Bitcoin and Select Altcoins
Bitcoin’s rising 20day EMA and RSI above 63 indicate bullish control, and buyers could attempt to push the price above $28,868 for a rally to $32,500 and potentially $40,000. Similar analysis done for Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon, Solana, Polkadot, and Litecoin. Cardano has a potential bullish setup with a pattern target of $0.60 and key support at $0.33.
As always, this article does not provide investment advice or recommendations.
Image Source: Wikimedia Commons
