BTC Bulls to Target $30,000 on UBS Acquisition of Credit Suisse Group

Key Insights:

• It was a bullish Sunday session, with BTC gaining 3.82% to end the day at $27,943.
• The news of UBS AG acquiring Credit Suisse Group AG was market positive.
• Technical indicators are bullish, with $30,000 still in view.

On Sunday, bitcoin (BTC) rose by 3.82%. Reversing a 1.60% fall from Saturday, BTC ended the week up by 26.54% to $27,943. BTC returned to the $28,000 handle for the first time since June 12. Notably, BTC’s gains came at the expense of Credit Suisse Group (CS), which ended the week down 26.10%.

Range-bound throughout the morning, BTC slipped to an early low of $26,838 before making a move. Steering clear of the First Major Support Level (S1) at $26,434, BTC surged to a late high of $28,342. BTC broke through the First Major Resistance Level (R1) at $27,508 and briefly through the Second Major Resistance Level (S2) at $28,101 before ending the day at $27,943.

BTC Responds to UBS AG Acquiring Credit Suisse Group AG

On Sunday, news hit the wires of UBS AG (UBS) agreeing to acquire Credit Suisse Group AG (CS).

Before the deal, the banking crisis had shone the light on BTC and the broader crypto market. Regulators and lawmakers may need to change tact, with the collapse of two US banks and the UBS acquisition of Credit Suisse a close call for investors across more traditional asset classes.

US Senator Elizabeth Warren requested an investigation into the collapse of Silicon Valley Bank and Signature Bank (SBNY), noting that they were the second and third-largest bank failures in US history. Senator Warren was scathing and assigned responsibility to bank executives and the Federal Reserve for regulatory rollbacks that allowed the failures to happen.

Senator Warren reportedly had this to say,

“We need accountability for our regulators who clearly fell down on the job.”

Adding,

“Remember the Federal Reserve Bank and Jerome Powell are ultimately responsible for the oversight and supervision of these banks. And they have made clear that they think their job is to lighten regulations on these banks. We’ve not seen the consequences.”

The Day Ahead

Banking sector-related news will continue influencing investor sentiment, with central bank chatter also in focus.

A banking crisis-driven shift in central bank monetary policy away from aggressive policy goals to curb inflation would support riskier assets.

However, as investors consider the latest news, investors should continue to monitor Binance and FTX news and updates from the ongoing SEC v Ripple case.

Bitcoin (BTC) Price Action

This morning, BTC was down 0.25% to $27,872. A mixed start to the day saw BTC rise to an early high of $28,024 before falling to a low of $27,872.

Technical Indicators

BTC needs to avoid the $27,708 pivot to target the First Major Resistance Level (R1) at $28,577. A move through the Sunday high of $28,342 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 $29,212 and resistance at $30,000. The Third Major Resistance Level (R3) sits at $30,716.

A fall through the pivot would bring the First Major Support Level (S1) at $27,073 into play. However, barring a crypto event-fueled crypto sell-off, BTC should avoid sub-$27,000 and the Second Major Support Level (S2) at $26,204. The Third Major Support Level (S3) sits at $24,700.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. BTC sat above the 50-day EMA ($25,411). The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA moving away from the 200-day EMA, sending bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($25,411) would support a breakout from R1 ($28,577) to target R2 ($29,212) and $30,000. However, a fall through S1 ($27,073) would bring S2 ($26,204) and the 50-day EMA ($25,411) into view. A fall through the 50-day EMA would send a bearish signal.