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Investing.com – The rose further over the weekend, reaching a peak of $28,330 on Sunday, and remains close to that peak on Monday morning, at around $27,700.
At the time of writing, the is showing a gain of 2.2% over 24 hours and nearly 24% over 7 days. Furthermore, between the March 10 low at $19,590, just before the current bull run kicked off, and Sunday’s peak, the cryptocurrency posted a gain of over 44%.
Central Banks and the Banking Crisis Support Bitcoin
Recall that Bitcoin and the cryptocurrency market in general have benefited greatly from recent developments with regard to banks. Indeed, the difficulties of the banking sector lead to the need for more flexible monetary policies, which is positive for cryptocurrencies.
In the latest developments about the banking crisis, it should be noted that the bank UBS agreed this weekend to buy the Credit Suisse in difficulty, while several central banks, including the Fed, the ECB, the BoE or the SNB and d Others have announced coordinated action to ensure the liquidity of the Dollar.
It was these announcements that appear to have been behind the renewed risk appetite that pushed Bitcoin higher on Sunday.
Upcoming risky events for BTC/USD
Regarding the next events likely to influence the BTC, it should be noted that the President of the ECB Christine Lagarde will speak this afternoon. However, it is especially Wednesday’s Fed meeting that could have a key impact on cryptocurrencies.
Indeed, the banking crisis has largely influenced market expectations, so that investors are now taking into account a 38% probability that the Fed will not raise its rates. However, the most probable scenario remains, at 62%, a rate hike of 25 basis points. The odds of a 50-point hike are nil, however, according to the Fed’s Investing.com Rate Barometer.
If the Fed does decide on a pause in rate hikes, Bitcoin could continue to rise. However, the detail of Jerome Powell’s remarks could also have a key influence, and offset or reinforce the impact of any rate decision.
Technical thresholds to watch on Bitcoin
From a graphical point of view, the new gains of Bitcoin obviously reinforce its bullish profile.
The cryptocurrency now faces an immediate hurdle, consisting of the psychological threshold of $28,000 and Sunday’s high of $28,330. Then the way will be clear towards the key threshold of $30,000.
On the downside, the $27,000 zone is the first potential support, before 26,000, then $25,200/25,000, a threshold below which the positive profile of BTC/USD would begin to cancel out.