Bitcoin has overcome a crucial barrier to rise above $29k briefly before retracing back to $28.5k at press time. The world’s dominant crypto is still up by over 9% in the past few days.
In just three months, BTC has risen by an impressive 75% trouncing the Nasdaq 100 and gold, which have increased by 15% and 9%, respectively, over the same period.
The token also outpaced other cryptocurrencies, including ether’s 50% increase.
The asset did, however, experience some spikes in volatility throughout the first quarter of 2023, and, according to data aggregator Santiment, it traded in a very constrained range.
Santiment through a brief assessment evaluated the support and resistance levels as the market entered Q2.
The BTC price is currently moving inside a small range, with support lying around $27,000 and resistance being around $28,600. The current market outlook is neutral to bearish, according to the report.
Bitcoin is expected to climb toward the range of $29,000 to $32,000 if it is able to overcome the resistance level of $28,600. But, if BTC drops below the $27,000 support level, it is likely to fall to $26,000 or even lower, it added.
Having said that, the rally coincided with predictions that the Federal Reserve will scale back interest rate increases this year, driving up the cost of risk assets while inflation stays low.
The failure of Silicon Valley Bank [SVB] also raised concerns about a larger bank contagion, positioning Bitcoin as a substitute for traditional financial institutions as a place to store savings.
Enrico Rubboli, CEO of blockchain scaling solution Mintlayer, told Insider this month.
The Silicon Valley Bank meltdown has directed a lot of attention to the permissionless and autonomous nature of Bitcoin for storing savings. Combined with a low CPI print, the price of bitcoin is pulling retail into the crypto economy again.
Bitcoin Inflows Reach 8-Month High
As per a recent CoinShares post, the increase in Bitcoin inflows to $128 million reflects investors’ confidence in the crypto as a safe haven.
Following six weeks of outflows totaling $408 million, this represents a remarkable turnaround. It is also the biggest inflow since July 2022.
The Bitcoin network received a further boost with the launch of Ethereum scaling solution StarkWare’s Zero-knowledge proofs [ZK-proofs/ZKPs].
With these, individual blocks and eventually the entire blockchain can now be verified faster by users.