BTC Bulls to Target $29,000 on SEC v Ripple Sentiment

Key Insights:

• It was a bullish Sunday, with BTC rising by 1.82% to end the day at $27,978.
• Easing Deutsche Bank jitters delivered support, with no crypto events to distract investors.
• The technical indicators remain bullish, with $30,000 still in view.

On Sunday, bitcoin (BTC) rose by 1.82%. Following a 0.06% gain on Saturday, BTC ended the week up by 0.13% to $27,978.

A mixed start to the day saw BTC fall to an early low of $27,438. Steering clear of the First Major Support Level (S1) at $27,158, BTC rose to an early afternoon high of $28,227. BTC broke through the First Major Resistance Level (R1) at $27,804 and briefly through the Second Major Resistance Level (R2) at $28,130 before ending the day at $27,978.

Fears of a Deutsche Bank Collapse Subside to Deliver Support

It was another quiet session on Sunday, with no crypto events or banking sector-related news to spook investors.

Bullish sentiment toward BTC and the broader crypto market amid the banking crisis resumed, with a lack of regulatory activity and US lawmaker chatter also BTC positive.

While an increasingly active SEC and anti-crypto sentiment on Capitol Hill leaves crypto America in a precarious position, hopes of a Ripple victory in the SEC v Ripple case could materially change the narrative. XRP had a breakout week on rising hopes of a Ripple victory.

In the final hour, the NASDAQ mini delivered further support, with the banking sector likely to be the focal point for the global financial markets and BTC over the nearer term. Easing fears of a Deutsche Bank (DB) collapse provided BTC support throughout the weekend.

However, headwinds linger, with Binance and Coinbase (COIN) under intensifying regulatory scrutiny. There is also the lingering risk of another bank collapsing following the Silicon Valley Bank and Signature Bank bankruptcies.

The Day Ahead

Investors should monitor updates from the ongoing SEC v Ripple case and Binance and Coinbase (COIN)-related news.

However, the banking sector will likely remain the area of interest at the start of the week.

There are no US economic indicators to influence the afternoon session, leaving BTC exposed to Fed chatter and the NASDAQ Composite Index.

Bitcoin (BTC) Price Action

This morning, BTC was down 0.05% to $27,963. A range-bound start to the day saw BTC rise to an early high of $27,996 before easing back.

Technical Indicators

BTC needs to avoid the $27,881 pivot to target the First Major Resistance Level (R1) at $28,324. A move through the Sunday high of $28,227 would signal an extended bullish session. The crypto news wires should be crypto-friendly to support an extended rally.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $28,670 and resistance at $29,000. The Third Major Resistance Level (R3) sits at $29,459.

A fall through the pivot would bring the First Major Support Level (S1) at $27,535 into play. However, barring a crypto event-fueled sell-off, BTC should avoid sub-$27,000. The Second Major Support Level (S2) at $27,092 should limit the downside. The Third Major Support Level (S3) sits at $26,303.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. BTC sat above the 50-day EMA ($27,344). The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, sending bullish signals.

A hold above S1 ($27,535) and the 50-day EMA ($27,344) would support a breakout from R1 ($28,324) to target R2 ($28,670) and $29,000. However, a fall through S1 ($27,535) and the 50-day EMA ($27,344) would give the bears a run at S2 ($27,092). A fall through the 50-day EMA would send a bearish signal.