It was a bullish Saturday session, with BTC extending its losing streak to five sessions. Dip buyers provided modest support on Sunday, as investors tracked updates in USD Coin and Silicon Valley Bank. Technical indicators remain bearish, with less than $18,500 in sight.
On Saturday, Bitcoin (BTC) rose 1.62%. Reversing a 0.88% loss from Friday, BTC ended the day at $20,529. While BTC revisited below $20,000 for the second time since Jan. 14, BTC ended a five-day losing streak.
A bullish start to the day saw BTC rally to an early high of $20,789. BTC broke above the first major resistance level (R1) at $20,525 before falling to a mid-morning low of $19,863. Moving away from the first major support level (S1) at $19,735, however, BTC rallied to end the day at $20,529.
USD Coin and Silicon Valley Bank Delivered a Choppy Saturday Session
Fed Fear receded into the background on Saturday, with investors monitoring updates on Silicon Valley Bank and the depegging of USD Coin (USDC).
News broke on Saturday that Circle plans to tackle Silicon Valley Bank’s shortfall in corporate resources. Nonetheless, the USDC remained unpegged from the greenback at $0.9705 this morning.
Updates on the demise of Silicon Valley Bank (SIVB) were less crypto-friendly. Investors will have to wait until Monday for more details. The Federal Reserve announced an emergency meeting on Monday, which may shed light on whether regulators can make SVB’s creditors whole. Ahead of the Fed meeting, SVB contagion will remain elevated.
Considering the situation and the threat to other US regional banks, the updates will have a major influence on US futures and the cryptocurrency market by default.
The NASDAQ Composite Index fell 1.76% on Friday, and the Dow and S&P 500 posted losses of 1.07% and 1.45%, respectively.
Bitcoin Price Action (BTC) – Technical Indicators
This morning, BTC was down 0.48% at $20,431. A mixed start to the day saw BTC rally to an early high of $20,562 before falling to a low of $20,379.
BTC needs to avoid the $20,394 pivot to target the first major resistance level (R1) at $20,824. A move through Saturday’s high of $20,789 would indicate an extended bullish session. Crypto news wires need to be crypto-friendly to support a prolonged rally.
In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $21,320, and resistance at $21,500. The third major resistance level (R3) sits at $22,246.
BTC sat below the 50-day EMA ($21,402). The 50-day EMA turned back from the 200-day EMA, and the 100-day EMA turned back from the 200-day EMA, giving bearish signals.
A move through R1 ($20,924) would give the bulls a run on R2 ($21,319) and the 50-day EMA ($21,402). A move through the 50-day EMA would send a bullish signal. However, a failure to move through the 50-day EMA ($21,402) would leave the bears in control.
By Audy Castaneda
