‘Definitely not bullish’ — 7% Bitcoin price gains fail to convince traders
2023.03.29 14:24
Bitcoin (BTC) may have erased its Binance “FUD” losses, but popular traders are anything but bullish.
Despite gaining up to 7.5% versus its March 28 lows, BTC/USD is causing more suspicion than excitement with its return to local highs.
$30,000 stays breaker for bullish sentiment flip
In a move that echoes its reactions to previous news events, such as the Silicon Valley Bank demise, Bitcoin has recovered snap losses in record time.
On March 29, BTC price action hit $28,650 on Bitstamp — just $200 off new nine-month highs.
Unlike before, however, the mood among market participants is distinctly risk-off under current conditions.
Among them is popular trader Muro, who argued that the bounce came courtesy of large-volume traders and was nothing more than a product of their strategies.
“The big guys basically brought price back to their recent short entry (red) by taking profit,” he commented alongside a chart of BTC/USDT perpetual futures.
“I’m definitely not bullish. Going small risk short again.”
BTC/USDT perpetual swaps annotated chart. Source: Muro/Twitter
Related: US enforcement agencies are turning up the heat on crypto-related crime
Others looked to longer timeframes to make the case for Bitcoin at least taking a breather in its current trading range.
Historically, the area around $28,000 has been the most active in terms of volume, and attempts to flip it from resistance to support thus require exceptional strength.
“What is more important, the local weekly breakout of a multi-month range, or the retest of the most significant supply zone in the last 2 years while we face all kinds of headwinds?” trader and analyst Cantering Clark argued.
“I will get just as bullish as every carnival barker when we are above 30k. Also, not for nothing, in trending markets there should be nothing wrong with buying higher. Until then, respecting resistance and positioning in accordance with that.”
Fellow trader and analyst Josh Rager agreed, adding a BTC/USD chart showing the significance of the range.
BTC/USD annotated chart. Source: Josh Rager/Twitter
China liquidity among the day’s macro triggers
BTC/USD, meanwhile, traded at $28,300 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Related: Bitcoin price jumps above $28K after 1.5K BTC shorts ‘blown out’
The day’s Wall Street open offered little by way of additional momentum despite United States equities trending higher.
Analytics account Tedtalksmacro nonetheless noted the resumption of liquidity injections from China’s central bank — a potentially key event given crypto markets’ susceptibility to central bank liquidity.
The Chinese Central Bank are adding liquidity again.
Largest injections via reverse repo in a month. pic.twitter.com/94NHc7lMCk
— tedtalksmacro (@tedtalksmacro) March 29, 2023
As Cointelegraph reported, all eyes continue to be on the United States for the release of key macro data later this week.
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