Bitcoin price momentarily rose above the crucial level of $30,000 on Wednesday amid fears that the banking crisis isn’t over yet. This time, the focus is on First Republic Bank.
What’s driving the market?
As is often the case, altcoins tend to move in tandem with the leading crypto – Bitcoin. Indeed, BTC/USD rallying on Wednesday boosted Ethereum price to a one-week high at $1,965.3. Other cryptocurrencies like Polkadot and Cardano also followed the trend.
A look at the crypto fear & greed index, which is one of the major measures of the market sentiment, highlights the uncertainty in the market. On Thursday, it was at a greed level of 59. This is an increase from last week’s neutral level of 52. Even so, it is a significant decline from last week’s 63.
On the one hand, bitcoin price is finding support in its status as a modern-day safe haven. Indeed, the banking crisis was one of the bullish drivers of cryptocurrencies in March. During this period, expectations of a rather dovish stance by the Fed further boosted the asset.
However, those expectations have been tapering in recent sessions. This explains the pullback over a span of two weeks. With the Fed interest rate decision scheduled for release next week, investors will be keen on the bank’s tone.
Bitcoin price prediction
BTC/USD skyrocketed past 30,000 on Wednesday after being on consolidation mode over the past five sessions. However, after the knee-jerk reaction, it pulled back below the resistance level at 28,376.67, which is along the 25-day EMA.
On Thursday, the asset appeared to have attracted more buyers, giving the bulls an opportunity to retest the crucial level of 30,000. As at the time of writing, bitcoin price was still finding resistance at 29,298.92.
If the bulls manage to push bitcoin price past the aforementioned level, 30,188.30 will be a resistance level worth watching. On the lower side, 28,376.67 will likely remain a steady support zone for the crypto. Overall, the bulls will be in control of the market for as long as the asset continues to trade above the 50-day EMA at 27,256.66.