Bitcoin on a breather, as $30k beckons

The world’s largest crypto by market cap is taking a healthy pause after briefly breaching the $28,000 mark, though still holding around its highest levels since June 2022.

Bitcoin’s year-to-date gains soared by as much as 72% before paring such advances to 67% at the time of writing.

Although we had previously cited “3 reasons why Bitcoin might falter in March”, no one could have predicted the turmoil plaguing the traditional banking sector in the US and Switzerland, coming into this month.

The recent crises affecting the banking sectors on both sides of the Atlantic have resulted in spiked demand for assets that promise to serve as an alternative to traditional finance.

Cryptos appear to have also benefitted from the emergency measures rolled out by the Fed to preserve liquidity for the financial system, making conditions ripe for crypto price gains.

Yet, Bitcoin may still see a technical pullback soon, with its 14-day relative strength index looking to ease back below the 70 level.

Such a pullback should then set a stronger platform for its next surge, with crypto bulls eager to lay claim on the key round number of $30,000.

Still, the fact that prices have managed to confidently overcome the $25k hurdle is likely to have instilled more conviction in Bitcoin bulls.

 

And key events due in the coming days could prove pivotal for Bitcoin’s next big move.

 

1. Front and centre is the upcoming Fed policy meeting.

The FOMC members convene today and announces their policy decision tomorrow (March 22^nd), followed by Fed Chair Jerome Powell’s keenly-awaited press conference.

Should the US central bank pivot towards a more supportive policy bias, and suggest that policymakers stand ready to inject more liquidity in an already-strained financial system, that could be the cue for Bitcoin bulls to charge higher.

On the flip side, should the Fed press on with its hawkish intentions in persisting with even more rate hikes, that may incur even more damage on the traditional banking sector.

Such a narrative could spur more contagion fears, to the glee of crypto advocates.

 

2. Over in Switzerland, its central bank meeting on Thursday also bears close monitoring.

After all, the Credit Suisse saga is not yet over, despite all the supportive measures thrown its way, including its takeover by rival UBS.

Contagion fears may be ramped up if the SNB is looking to roll out more supportive measures to limit the fallout from the Credit Suisse saga.

Such fears may well be the catalyst for the psychologically-important $30k Bitcoin.