BTC Bears to Target Sub-$27,500 on US Recession Fears

Bitcoin (BTC) rebounded from session declines on Wednesday, finishing the day unchanged at $28,153. Tuesday saw a 1.29% increase in BTC.

BTC increased to a high of $28,801 early in the day thanks to a positive start to the day. Before falling to a late low of $27,828, BTC passed through the First Major Resistance Level (R1) at $28,512. BTC rebounded to close the day at $28,153 after avoiding the First Major Support Level (S1) at $27,734.

Send economic indicators BTC and the NASDAQ Composite Index On Wednesday, South US economy data showed little improvement. The crucial ISM Non-Manufacturing PMI dropped from 55.1 to 51.2 compared to an expected 54.5. The job indicator saw a significant decline from 54.0 to 51.3. Riskier investments were also impacted by ADP figures. Down from 261k in February, the ADP recorded a 145k rise in jobs in March. economists predict a 200k increase.

Recessionary warning sirens have started to sound following the weaker-than-expected JOLTs employment listings on Tuesday and the ISM Manufacturing PMI figures on Monday.

The NASDAQ Composite Index decreased by 1.07 percent. The NASDAQ mini was down 23.25 points this morning, which placed early pressure on BTC.

The Coming Day

Initial US unemployment reports will have an impact on the afternoon session later today. We anticipate BTC to be sensitive to the figures when the US Jobs report is released on Friday.

Regulatory action and legislative chitchat, however, will continue to be important. News about Binance and Coinbase (COIN) and developments in the current SEC v. Ripple lawsuit will have an impact.

Bitcoin Price Action (BTC)

BTC was down 0.36% to $28,051 this morning. BTC dropped from an early peak of $28,153 to a low of $27,996 due to a negative start to the day.

Technical Significance

To target the First Major Resistance Level (R1) at $28,693 and the Wednesday high of $28,801, BTC must advance past the $28,261 hinge. Returning to $28,500 would mark the start of a prolonged positive period. For a prolonged rise, the US economic data and the cryptocurrency news channels should be supportive.

BTC would probably challenge the Second Major Resistance Level (R2) at $29,234 and resistance at $29,500 in the case of a prolonged rise. At $30,207, the Third Major Resistance Level (R3) is located.

If the turn is not completed, the First Major Support Level (S1) at $27,720 will be in action. BTC should stay above $27,000, though, absent another crypto event-driven sell-off. The decline should be contained by the Second Major Support Level (S2) at $27,288. S3, which is the Third Major Support Level, is worth $26,315.