The price of Bitcoin (BTC) touched $28,000 at the Wall Street open on March 24, as fresh banking troubles failed to give the cryptocurrency new momentum.
Traders remain bullish on BTC’s long-term trend
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair lost momentum and hit daily lows of $28,001 on Binance.
The pair was trying to consolidate support after a classic comeback the day before that erased the panic on the back of the latest US economic policy moves.
The Federal Reserve raised core interest rates by 0.25% on March 23, this along with mixed comments from Chairman Jerome Powell served to unnerve risk assets amid a lack of clear trajectory.
Bitcoin therefore showed indecision on the day, with analysts equally divided on where BTC price action might head next.
“Typical to see some panic on that dip, but unless we start to see a change in market structure, lower lows and lower highs, then we have nothing to worry about from a bullish perspective.”, said an optimistic Crypto Tony to his Twitter followers.
Popular trader and analyst Rekt Capital was similarly bullish on the overall strength in the BTC/USD pair.
“All BTC needs to do to confirm a new macro uptrend is the monthly candle close above ~$25,000”, argument in part of his latest analysis.
“So far, good.”
Meanwhile, trader Credible Crypto suggested that even if the BTC/USD pair were to drop to $23,000, this would not imply a clean break from current bullish behavior.
“A few weeks of work before continuing our rally would be good for us here. Anything below $22,000-$23,000 is fair game and nothing to worry about in my opinion.” wrote on March 23.
Deutsche Bank makes market nervous after Credit Suisse
Short-term sentiment was affected by a temporary trading halt on the world’s largest exchange Binance, which briefly suspended spot trading.
On-chain monitoring resource Material Indicators noted that supply liquidity had appeared on the Bitcoin order book to prevent a sell-off.
After an extended outage @Binance is back online, and someone put up a $13M block of bid liquidity to try to slow down a selloff. I wonder who that could be. pic.twitter.com/o195XMo4Zt
— Material Indicators (@MI_Algos) March 24, 2023
After a lengthy outage, @Binance came back online, and someone placed a $13 million bid liquidity block to try to stem a sell-off. I wonder who it could be
On the other hand, Macro concerns stemming from the US banking crisis rose on the day Deutsche Bank lost value just days after Swiss lender Credit Suisse witnessed a takeover and government bailout.
Ouch! Deutsche Bank’s credit default swaps, which represent insurance of its bondholders against a potential default, spike as banking doom is back in Europe. Markets price 31% default probability for DB sub-bonds and 16% for senior DB paper. pic.twitter.com/APrSRh9yVb
—Holger Zschaepitz (@Schuldensuehner) March 24, 2023
OH! Deutsche Bank’s credit default swaps, which provide insurance for its bondholders against a potential default, soar as bank doom returns in Europe. Market Price Probability of Default of 31% for DB Subbonds and 16% for DB Senior Paper
“Dumping of bank actions, Dumping of yields. Precious metals up. Bitcoin a bit flat”, answered analyst Daan Crypto Trades.
“It seems that the TradFi world continues with the same trend as last week. Let’s see if BTC has more fuel left or not.”
At the time of writing, Deutsche Bank (DBK) shares were down nearly 10% on March 24.
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