Bitcoin (BTC) hit $29,000 yesterday for the first time since June 2022, but the price immediately fell back below it. Subsequently, bitcoin held above USD 28,600, but lost traction several hours later and then dropped below USD 28,000, but then recovered slightly. This morning, however, bitcoin drops sharply again and is already as low as $27,615 on Binance and €25,370 on Bitvavo.
This puts the bitcoin price down 3.5% today. The trading volume fell by 14% in the past 24 hours. The total market capitalization is $537 billion and the dominance is 46%. The Fear & Greed Index comes out at 63 (Greed).
Bitcoin Fear and Greed Index is 63 ~ Greed
Current price: $28,027 pic.twitter.com/HT14KfqNp5— Bitcoin Fear and Greed Index (@BitcoinFear) March 31, 2023
Bitcoin fakeout and volatility
In retrospect, the peak above $29,000 turned out to be a so-called fake out to have been. That means that bitcoin has been stuck in the same range between $27,000 and $28,500 for two weeks now.
Still, there is a chance that volatility will increase today. Today new US inflation figures are published with the core personal consumption expenditures (PCE) price index.
As we wrote earlier this week, we are also facing a huge expiration of bitcoin options today. These now have a face value of more than $4.2 billion.
Bitcoin and Ether options client interest and trading activity continue to accelerate as Q1 wraps up, with both contracts reaching record open interest of 15,089 contracts on March 27. https://t.co/qWPKtkrneT pic.twitter.com/H9dcOxKEGc
— CME Group (@CMEGroup) March 30, 2023
However, there is very little liquidity for bitcoin right now and that could dampen volatility unless the derivatives market goes wild again. That could mean we won’t see the next big move until April, possibly with the consumer price index (CPI).
#Bitcoin market share of trade volume hit its lowest level since July 2022 last week after Binance removed zero-fee trading for BTC pairs. pic.twitter.com/bKE0qFpXWV
— Kaiko (@KaikoData) March 30, 2023
Bitcoin hash rate keeps rising
Meanwhile, the average total remains hash rate, or the computing power of the entire Bitcoin network, is constantly increasing. That is a good sign for the health of the network, but also increases the pressure on miners. However, due to the rising price, these miners are no longer under as much pressure as they were last year.
As Bitcoin’s hash rate continues its unrelenting climb into new highs, Hash Ribbon’s doubters are getting absolutely destroyed. pic.twitter.com/gIAVCEWWxh
— Charles Edwards (@caprioleio) March 31, 2023
Crypto Insiders analysts share new BTC analysis
Nevertheless, it remains a very uncertain market. Macroeconomic factors don’t seem to be on their side, but the market is holding up better than expected and bitcoin has already made an impressive rise this year. The analysts of Crypto Insiders also report this uncertainty, but still recently shared their expectations for the bitcoin price with Premium members. This analysis is now available for everyone to see here.
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