Bitcoin price has been consolidating for the past few weeks, trading between $29,000 and $26,500. Bitcoin, the largest cryptocurrency by market cap, displayed a stellar performance in the first quarter of 2023, climbing more than 71% in the year to date. Even so, BTC seems to be stalling in the $28,000 level, slightly below its 10-month high.

Fundamentals

Bitcoin price has been range-bound for the past few weeks as it remains clueless about the next directional move. BTC’s total market cap climbed by 1.48% in the past day to $548 billion, while the total volume of the digital asset traded in the same period jumped by more than 26%.

The global crypto market was flashing green earlier on Monday after the long weekend ahead of the US key inflation data. Statistics by Coinmarketcap show that the global crypto market cap has increased by 1.10% over the last day to $1.19 trillion, while the total crypto market volume increased by 4.77%. Bitcoin’s dominance has also inched higher in the past 24 hours.

US Treasury yields slipped after data released last week hinted at a slowdown in job growth. The yield on the benchmark 10-year Treasury note dipped to 3.381%, while the 30-year Treasury bond declined to 3.581%. Data released by the Labor Department last week showed that nonfarm payrolls increased by 236,000 in March, falling in line with market expectations, but down from 326,000 new hires in February.

Markets have now shifted their focus to the US Consumer Price Index (CPI) data due on Wednesday. Analysts forecast a decline in the inflation rate for March. The Federal Open Market Committee (FOMC) will release minutes from its latest monetary policy meeting on the same day. Markets are weighing the prospects of further monetary policy tightening and a potential US recession off the back of the recent banking crisis.

Bitcoin Price Outlook

Bitcoin price has been highly consolidating for the past few weeks, trading between its 10-month high at $29,184 and $26,500. At press time, BTC was trading at $28,329.35, following an intraday high of $28,425.83.

The coin has managed to maintain its position above the 25-day and 50-day moving averages, as well as the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) is currently at 61, while the Moving Average Convergence Divergence (MACD) indicator remains bearish.

Therefore, I expect the Bitcoin price to continue trading between the tight range of $29,000 and $27,520 in the short term as it struggles to find direction. A move past the resistance at $28,945.30 will have buyers eyeing the $30,000 level. However, a flip below the crucial support level at $26,500 will invalidate the bullish view.

BTC Price Chart