Bitcoin (BTC) has made a remarkable comeback in 2023, achieving its best quarterly gain in two years with a 72% increase so far this year, as per the latest update. At the time of writing, the value of BTC is $28,398, raising the cryptocurrency’s market capitalization to $542 billion, pushing it ahead of other competing assets, including the world’s largest altcoin Ethereum (ETH), Gold, and Nasdaq.
Reasons for the BTC Rally
The recent uptrend can be attributed to speculation that central banks, led by the Federal Reserve, will abandon their aggressive rate increases in response to recession signals. This has fueled an increase in leveraged risk in BTC in the derivatives market. Furthermore, the funding rates for Bitcoin reveal a spike, indicating a positive sentiment among market participants.
According to technical analysis, the king of cryptocurrencies has further upside potential. BTC is presently in an uptrend, with no significant deviation in its Relative Strength Index (RSI). The price is also above two key Exponential Moving Averages (EMAs), which are expected to serve as support in the event of a price decline.
Resistance levels for BTC are seen at $28,784, a key level, and the weekly high at $29,380, which coincides with the 38.2% Fibonacci Retracement level.
Once BTC price crosses these levels, it could continue its climb towards the target of $30,040, a level that previously acted as support for Bitcoin during mid-2022. Support levels for BTC are seen at $26,888, followed by the monthly high at $25,270 and low at $21,376 in the event of a decline in the asset.
Traders Anticipate US Macroeconomic Data Print
Traders are anticipating the macroeconomic data print from the United States on March 31, preparing for potential buying opportunities should the downside enter again. Meanwhile, BTC price action has effectively erased any trace of losses engendered by the news that the largest crypto exchange, Binance, was being targeted by US regulators. Let’s see how it performs after the Fed meeting.