HomeContributorsTechnical AnalysisBitcoin Bulls Battle for the USD 30k Psychological Level

Bitcoin Bulls Battle for the USD 30k Psychological Level

The last few days have been volatile for cryptocurrency traders. The BTCUSD rate fell to the USD 27k support line and rose to USD 30k.

Bullish sentiment was fueled by new fears in the banking sector: First Republic Bank’s Q1 report showed a significant outflow of deposits, although earlier USD 30 billion was poured into the bank to calm depositors. WSJ writes about the lack of a simple solution. Stocks plummeted more than 50%, eroding confidence in the banking sector but boosting confidence in cryptocurrencies.

The bearish mood was driven by:

→ the news about the requirements of the US Internal Revenue Service (IRS) to the Kraken cryptocurrency exchange to issue the data of its users to the court. The Kraken exchange refused to comply with the requirements, believing that the IRS had gone beyond what was permitted.

→ the Bitrue Incident: A technical glitch caused the XRP price to drop to zero, resulting in the liquidation of its clients’ positions.

Looking at the BTCUSD chart, it can be noted that the psychological level of USD 30k looks like a serious resistance. But with support from the USD 27k level (1) and the median line of the rising channel (2), the bulls may try to take a new assault.

FXOpen is a global Forex and CFD Broker, founded in 2005 by a group of traders. With over 16 years of experience, the company has gained an excellent reputation a major brokerage that continues to expand rapidly. The broker offers a choice of platforms, including the popular MT4 and MT5 platforms, with a wide range of trading instruments with spreads from 0.0 pips: 600+ FX, index, share, commodity and cryptocurrency CFDs. FXOpen also provides its own PAMM technology, allowing clients to benefit from the strategies of experienced traders with a proven track record of successful trading and guarantees automatic distribution of profit and loss between the strategy provider and the strategy followers. CFDs are complex instruments and come with a high risk of losing your money. PAMM is only available in certain jurisdictions. Cryptocurrency CFDs are not available to Retail clients at FXOpen UK.

Featured Analysis

Learn Forex Trading