Bitcoin (BTC) reached its highest level since the beginning of the month on March 13, as shares of US banks experienced the largest mass shutdown in history.
BTC price sees a “phenomenal” bounce
Data from Cointelegraph Markets Pro and TradingView tracked a fully bullish hourly candle for the BTC/USD pair, which hit $23,725 on Bitstamp.
The move was highly anticipated by market participants, many of whom had warned of extreme volatility at the open on Wall Street.
45min into US open, and banks getting halted left, right and center. By 4pm eastern the Fed Funds might be back at 0%. $XAU $XAG $BTC $ETH is the only way!
— Arthur Hayes (@CryptoHayes) March 13, 2023
45 minutes into the US open, and banks stop left, right, and center. At 4 pm ET, fed funds could return to 0%. $XAU $XAG $BTC $ETH is the only way!
This came to pass, and bitcoin and altcoins benefited from the intense uncertainty surrounding bank stocks, particularly as trading began.
The consequences of the bankruptcy of two other US banks over the weekend were felt strongly, not only in our country, but also in Europe, where the banks also suffered heavy losses.
“Bitcoin massive move. Now facing resistance zone (missing $21,600),” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, reacted.
“Trend is back up, buy the dip on S/R changes. Resistance around $23.3-23.6K, if it stops and consolidates -> altcoins should continue.”
Trader and analyst Rekt Capital, who previously argued that the monthly candle needed to close to confirm a long-term trend break, called Bitcoin’s plunge below $20,000 the previous week a “bear trap.”
“The way BTC has rallied in such a short space of time just goes to show that the drop to ~$20,000 was a bear trap”, wrote in one of the many tweets when the BTC/USD pair hit $23,500.
Rekt Capital called the rally “phenomenal” in a later analysis, adding 18% off local lows on March 10.
phenomenal #BTC rebound from the Pi Cycle MA and Monthly Range Low support area$BTC has rallied +18% and is now attempting a breakout from the Range
It’s been a crazy week in Crypto#Crypto #Bitcoin https://t.co/2bWKwPUlF2 pic.twitter.com/rrG0bsNita
— Rekt Capital (@rektcapital) March 13, 2023
#BTC Phenomenal Rebound from Pi Cycle MA and Monthly Low Range Support Area $BTC is up +18% and is now attempting a breakout from the range
It’s been a crazy week in the crypto sector
“If $22,400 holds as the new bottom, that’s all and a little more price needs to gain momentum to the main resistance in the $24,100-$25,000 range and really break through,” continuous the trader Gaah.
“We could have more price explosions, watch out for that region.”
Gaah shared a liquidity chart from Caue Oliveira, head of on-chain research and analysis at Brazilian crypto insights firm BlockTrends:
Outside of cryptocurrencies, the picture was slowly improving for US stocks, with the exception of a few banks.
Some of the worst results of the day came from First Republic Bank, which lost 76% and was halted shortly after opening.
In general, like he pointed businessman Brian Roemmele, more American bank actions were halted than ever before in history.
First Republic slumps more than 60% in US premarket trading as measures taken by US authorities to calm investor concerns failed to provide relief to the regional lender’s shares. (BBG) pic.twitter.com/Jf49izSvcu
—Holger Zschaepitz (@Schuldensuehner) March 13, 2023
First Republic plunges more than 60% in US premarket trading as steps taken by US authorities to calm investor concerns failed to ease the regional lender’s actions. (BBG)
In addition to rethinking the likelihood that the US Federal Reserve will continue to raise interest rates on March 22, markets are also reduced expectations that the European Central Bank will rise 0.5% this week.
Among the European losses for the day was already beleaguered Credit Suisse, which was down more than 7% to new all-time lows at the time of writing.
“The problem for Credit Suisse (and others like it) is that they can’t cover the deposit run by borrowing on the money markets. They can only go to the Swiss National Bank, for a second bailout. Will the SNB accept?” asked Alasdair Macleod, Goldmoney’s head of research.
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