Investors take refuge in Bitcoin, which rises above $28,000

Cryptocurrencies have become one of the safe haven assets for investors due to the recent banking crisis. Bitcoin is trading at $28,561 (+0.46%) on Thursday and has accumulated a 14% rise so far in March. Ethereum, although registering losses of 1.26%, also remains above $1,700.

The market has reacted positively to the lawsuit filed last Monday by the Commodity Futures Trading Commission (CFTC) against Binance and its founder Changpeng Zhao, as he is accused of evading the law. Experts believe that the complaint will only result in minor fines for the main cryptocurrency exchange by transaction volume.

Against this backdrop, buying has returned to Bitcoin, after sessions marked by indecision, and the main cryptocurrency by market capitalization is now aiming for $35,000.

"It seems that purchases in Bitcoin have returned after the last days of consolidation and once the bearish gap that was left about a year ago has been covered," explained César Nuez, technical analyst at Bolsamanía.

"The cryptocurrency could be shaping a trend continuation figure, so we will be closely watching for confirmation of the break of the $29,045 resistance. This would be a new sign of strength that would make us think of an extension of the rises up to the $35,000 resistance," Nuez added.

Likewise, the expert indicated that "the first level of support could be located at the lows of the last consolidation at $26,520. As long as it keeps trading above these prices, we will remain optimistic for the coming weeks".

The evolution of Bitcoin´s price will also be determined by the macro data revealed in the US, such as the final GDP for the fourth quarter, that will be published today, on Thursday, or the PCE deflator, the preferred inflation measure of the Federal Reserve (Fed), that will be released on Friday.

If inflationary pressures begin to recede, the central bank may terminate interest rate hikes in May. Conversely, if the report is more hawkish than expected, it would extend acceptance that monetary tightening will continue beyond May and/or June.

In other market news, most assets are trading with further selling. Cardano (ADA), for example, has fallen 2.68% and Solana (SOL) has dropped 2.96%.