Bitcoin price crossed above $30,000 on April 11

Key Takeaways:

  • Bitcoin price reached above $30,000 for the first time since June 2022
  • The US government will release consumer inflation data on April 12

NEW DELHI ( — Bitcoin price moved above $30,000 for the first time since June 2022 as BTC broke above key resistance near $29,000. However, the uptrend might result from BTC liquidity drying up in the market.

Bitcoin traders are paying more on trades due to slippage, which indicates declining liquidity. Slippage is the difference between the expected price of an order and the price at which the order executes.

BTC liquidity hit a 10-month low in March 2023 as Silvergate Capital and Signature Bank folded operations. Both banks had several ties with the crypto sector, and their closure left crypto firms without access to dollar-based payment systems.

Conor Ryder highlighted declining Bitcoin liquidity in March 2023

Conor Ryder, a researcher at Kaiko, highlighted the decline in Bitcoin liquidity in March, stating that US exchanges were hit the hardest. Additionally, Binance’s decision to remove zero fees for trading would force market makers to reduce their wide spreads.

As investors won’t pay for a taker fee and higher spreads

Ryder wrote in a tweet

Despite a recovery in 2023, trading volumes and liquidity have declined across the crypto market compared to 2022. Small retail investors left the market due to regulatory crackdowns and a slew of scandals in 2022.

Declining liquidity might have helped BTC price rally upwards, but the uptrend is unlikely to sustain for long.

Consumer Inflation Data Expected Slightly Lower

According to Bloomberg, economists expect the core consumer price index to register a 0.4% monthly gain. The increase would likely force the Federal Reserve to hike interest rates despite the stress in the banking system.

However, the next Fed meeting will be on May 3. As a result, March inflation data might not impact the rate hikes. If the month-on-month inflation remains strong, Fed might consider a 0.25% hike in interest rates.

Also Read: Bitcoin Hits $29K But Can It Survive A Crisis: A Look Through BTC History Amid Economic Fallouts

Meanwhile, market participants remain convinced that the central bank might cut rates in the year’s second half due to the banking crisis. A slight decrease in CPI data could fuel speculations of a rate cut. As a result, crypto markets might rally upward as buyers enter the market.

Bitcoin Price Above $30,000

Though BTC price rose above $30,000 on April 11, bears made their presence felt near a multi-month ascending trendline resistance. Furthermore, Bitcoin’s daily trading volumes have declined steadily since March 14.

The BTC price rally has helped the token re-test the ascending trendline resistance, which has rebuffed Bitcoin’s rally four times earlier. In addition, the rally pushed Bitcoin’s relative strength index into the overbought region, clocking at 70.77 on the daily charts.

Overbought RSI levels often forecast an impending trend reversal. As a result, traders consider the indicator a sell signal.

BTCUSD daily chart with ascending trendline resistance and RSI. Source:

If BTC price fails to clear the trendline resistance, Bitcoin might drop to its 20-day EMA (red wave) support near $28,400. Breaching the immediate support level might force BTC price to test the 50-day EMA (purple wave) support near $26,300 before recovering.

However, breaking above the immediate resistance from the ascending trendline near $31,100 might help Bitcoin price target resistance near $33,850 before downside corrections pare gains.

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