The world’s largest crypto made a run near $48,000 on Tuesday, March 29th, but was met with resistance at its 200-day moving average (DMA). Bitcoin is now trading at a price of $47,131, with a market capitalization of $895 billion, as of press time.
Bitcoin saw huge sell-offs earlier this year, and it wasn’t until the final week’s price rebound that it was able to erase all losses for 2022. More than $230 million in short positions were liquidated earlier this week, according to Coinglass statistics, on Monday, March 29th.
This occurs as Bitcoin spot volumes have exceeded Bitcoin futures volumes, with BTC now trading at $48,000.
This plainly demonstrates that the Bitcoin price rebound was mostly driven by the spot market.
Participants in the cryptocurrency market are still bullish.
Despite the fact that Bitcoin is encountering resistance at its 200-day moving average, some crypto market participants remain bullish.
The co-founder and chairman of Three Arrows Capital, Kyle Davies, declared:
“There are “no more sellers left after several waves of bad news — leverage wipe-out, macro concerns, Ukraine war. So it’s natural for Bitcoin to have a strong bid here.”
In addition, the Federal Reserve raised interest rates for the first time in 200 years earlier this month. The Fed announced a rate raise for the first time in four years. The Federal Reserve of the United States has also stated that additional rate hikes are expected this year. The market has become jittery and volatile as a result of this.
However, Jeff Dorman, chief investment officer at crypto asset management firm Arca, feels that risk assets typically move higher after a rate hike, based on past tendencies:
“The entire risk-assets selloff was way overdone and made no sense to begin with. Markets generally go higher during rate hikes, and it’s only at the end of a rate-hike cycle when markets typically go the other way.”
On-chain data provider Santiment reported that “Bitcoin’s whales have been active today. The 3,266 $100k+ transactions between 2pm and 6pm UTC were the most in a 4-hour interval since March 1st. Market prices peaked at just above $48.0k 8 hours ago, and they’ve now come down just slightly to $47.3k.”