Bitcoin Price Holds at $27,800 -Is $31,200 The Next Target?

Bitcoin price action continues to keep market players guessing as the new week begins. BTC still holds above the $27,000 support and could start a fresh surge if it successfully moves above the $28,150 resistance level. According to a recent analysis, the king crypto has days to go before commencing a new macro uptrend.

Popular trader and analyst Rekt Capital has identified a key monthly close in the making for Bitcoin price in his latest Twitter activity.

Notice how #BTC Macro Downtrend Breakout Candles have historically had upside wicks form (yellow circles)

This current Monthly breakout candle looks no different$BTC #Crypto #Bitcoin pic.twitter.com/HSzaaXHGfe

— Rekt Capital (@rektcapital) March 25, 2023

The post presented an optimistic picture of how the Bitcoin-US Dollar (BTC/USD) trading pair would likely close the month, hence the rhetoric, “Is $31,200 the next target?”

Bitcoin price action narrowly mimics previous cycles

Although Bitcoin price is having a hard time flipping the $28,150 resistance level into support, its price action indicates that the largest crypto by market cap is on course to abandon its bear market.

The recent gains for Bitcoin price against the dollar have set it above a macro downtrend maintained since the 2021 all-time highs (ATH). However, if the March close pans out, it will mark the first candle to complete above the trend line on monthly timeframes.

Citing Rekt Capital,

Next Saturday, the BTC Monthly Candle will have closed above the Macro Downtrend to confirm a new Bull Market.

The chart by Rekt Capital compares the 2023 Bitcoin price action to past cycles, implying that BTC is now making a breakout towards new ATH after recording a bear market low. If this proves true, the cycle low is identifiable in November 2022 at around $15,600. This was around the time when the crypto exchange FTX imploded under Sam Bankman-Fried’s leadership.

The bull run that started on March 11 for Bitcoin price catapulted BTC almost 50% to a high of $27,756 on March 17. This was when the flagship crypto secured $26,600 as a support level. Since then, Bitcoin has been trading horizontally as bulls fight to maintain above this position.

Factors That Fueled Bitcoin’s Latest Rally

The recent uptrend in Bitcoin price was fueled by various factors, including the current developments in the crypto sector and BTC’s reputation as a safe-haven asset. Noteworthy, topples in the banking sector have revoked investor confidence in traditional banks. This played an important role in pumping Bitcoin’s price as market participants saw BTC as a refuge.

#Bitcoin is suddenly looking like a safe haven – Reuters

This week WSJ, CNBC and now Reuters.Narrative is building… 💪

— Bitcoin Archive (@BTC_Archive) March 24, 2023

Secondly, a recent post cited Balaji Srinivasan making encouraging comments about Bitcoin. The former Coinbase CTO wagered $1 million that the Bitcoin price would hit $1 million by June. The bet and speculation have sparked keen interest, attention, and discussion in the crypto arena.

Given Srinivasan’s position in the crypto sector, the forecast caught the eye of Ark Invest’s Cathie Wood, alongside the arousal of wider investor interest and demand.

Finally, in a Friday announcement, Deutsche WertpapierService Bank (Dwpbank) said it would introduce a platform for retail clients of its 1,200 affiliate banks across Germany to access BTC without any KYC (Know Your Customer) procedures.

Great news for #BTC adoption and access in 🇩🇪

Through its new wpNex platform, the dwpbank will allow up to 1200 German banks to offer #Bitcoin trading – and soon more crypto-assets.

The crypto holdings will be integrated into the customers’s online banking securities account.

— Patrick Hansen (@paddi_hansen) March 24, 2023

Heiko Beck, CEO of dwpbank, noted that the bank would add more products to the platform’s service scope in the future, including cryptocurrencies, digital assets, and tokenized securities.

Is $31,200 The Next Target For Bitcoin Price?

At the time of writing, BTC is auctioning for $27,804 after gaining almost 1% in the last 24 hours. Trading activity was up almost 15% within the same timeframe to $14.678 billion. An increase in buyer momentum from current levels could see the people’s crypto shatter the immediate resistance level at $28,150 before stretching another leg up.

The next possible target for Bitcoin price would be the psychological resistance at $29,980, which is a level last seen in May when Do Kwon’s Terra Luna fiasco was headlining.

In highly ambitious cases, Bitcoin price could tag the $31,200 level, denoting a 12.83% increase from the current levels.

The positive thesis for Bitcoin price draws support from the Simple Moving Averages (SMAs) upward trajectory- the 50- 100- and 200-day SMAs at $24,024, $21,797, and $20,222 respectively. These showed that more buyers were approaching the scene.

The Relative Strength Index (RSI) also bolstered this thesis, with its price strength at 63, showing that there was more room for upside before BTC was overbought. Similarly, the Moving Average Convergence Divergence (MACD) was in the positive zone above the zero line, a sign of bulls leading the market. The prevailing green shade on the histograms further supported this position.

Conversely, if investors give in to selling appetite or profit takers pull the trigger, Bitcoin price could drop. First, it would lose the immediate support level at $26,600. Next, the price could descend to tag the moving averages, starting with the 50-day SMA.

Failure to scale a recovery or northbound move around the SMAs could see Bitcoin price plummet to the support confluence between the horizontal line and the 200-day SMA at $20,222, levels last seen on March 10.

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