Bitcoin on Verge of Breakout Towards $30K, But These Metrics Suggest Market Might Be Getting Too Hot

cryptonews.com:

According to technical analysts looking at the Bitcoin market on a short-term time horizon, the world’s largest cryptocurrency by market capitalization looks like it could be on the verge of a breakout towards the psychologically important $30,000 level and perhaps on towards the next major resistance zone around $32,500-$33,000.

Looking at BTC/USD on the four-hour candlesticks, a bullish ascending triangle pattern appears to have formed. These technical patterns often form ahead of bullish breakouts.

Though bulls be warned – Bitcoin formed a similar pattern between the 16th and 21st of February but failed to break higher (in the immediate future anyway), and instead spent the next few weeks pulling lower again.

Traders are looking ahead to Wednesday’s US Federal Reserve policy meeting as the next potential bullish catalyst.

The bank is expected to lift interest rates by a further 25 bps to the 4.75-5.0% range, but there is a chance they could hold amid concerns about cracks appearing in the US banking system.

Analysts have argued that whatever the outcome (i.e. hawkish or dovish), Bitcoin could benefit.

On the one hand, a hawkish Fed could worsen the bank crisis and further spur safe-haven appeal for Bitcoin (this has been a key tailwind for Bitcoin in recent weeks).

On the other, a dovish Fed could result in financial conditions easing, which could also boost Bitcoin (and broader crypto markets).

While many bulls are feeling confident in Bitcoin’s near-term outlook, it might be wise to temper expectations for further short-term gains, given that a number of metrics point to the Bitcoin market having become very hot.

In wake of the recent surge from earlier monthly lows under $20,000 to current levels above $28,000, Bitcoin’s