Daily Price Outlook
The BTC/USD is currently trading at 28,235, after gaining 3.18% in a day. Despite concerns about the banking industry, potential changes to monetary policy, and the US Federal Reserve's 25bp rate rise, cryptocurrencies managed to remain stable. Bitcoin (BTC) in particular continued to trade at over $28,000.
Less Hawkish Fed Leads to BTC Gains
On Wednesday, the Fed increased interest rates by 25 basis points. While Fed Chair Powell hinted at a possible pause to review how tighter monetary policy may affect the banking industry and the economy, the decision to hike rates sparked concerns about future problems in the banking sector.
However, US Treasury Secretary Janet Yellen calmed market sentiments by reassuring investors that bank deposits are secure and that authorities can deal with a banking crisis. Yellen's comments contributed to the bullish session that fueled the BTC/USD uptrend.
Strong Labor Market
On Thursday, new data showed that the initial Jobless Claims report for the week ending March 18 indicated a lower-than-expected increase in the number of people claiming unemployment benefits. US jobless claims decreased to 191k, down from 192k in the previous report and below predictions of 198k.
The job market seems to be performing better than economists had anticipated, which may result in increased inflationary pressure and the requirement for the Fed to hike rates more rapidly. As a result, investor concerns about the banking industry have reappeared.
Furthermore, as initial unemployment claims fell, the Dollar Index (DXY) also increased, and is now trading slightly higher at 102.63. The strengthening dollar has capped the BTC/USD rally.
Going forward, traders will be paying attention to preliminary PMIs and durable goods orders to determine market momentum.
BitGo to Launch ESG-friendly Bitcoin-backed Token
The market is preparing for the launch of a new joint venture that aims to capitalize on institutional interest in ESG Bitcoin activities. BitGo, a well-known crypto service provider specializing in digital asset custodial solutions, and Sustainable Bitcoin Protocol (SBP) have joined forces to introduce what they claim is the first sustainable custody solution.
This solution called the Sustainable Bitcoin Certificate (SBC), involves an on-chain approach to address the dirty energy issues that environmental activists have long associated with Bitcoin mining. The initiative is gaining momentum as both institutional and individual traders continue to drive up the price of BTC/USD.
BTC/USD Intraday Technical Levels
Pivot Point: 28055
BTC/USD – Technical Outlook
Bitcoin's price underwent a significant correction after the Fed raised rates from 4.75% to 5%, causing BTC to drop below the $27,500 level.
However, the bulls emerged near the $26,600 zone, and a low was formed near $26,623. Bitcoin then started a fresh increase and was able to recover all its losses, surpassing the $27,500 resistance zone and even the $28,000 resistance level.
However, the bears prevented further gains as they became active near the $28,500 zone, and BTC must break through this resistance to start a steady increase in the coming sessions.
If the cryptocurrency fails to clear the $28,500 resistance, it could initiate another decline, with immediate support located near the $28,000 zone and the trend line.
The next significant support is near the $27,700 zone or the 50% Fib retracement level of the recent wave from the $26,623 swing low to $28,798 high.
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