It was a bearish Wednesday session, with BTC falling 2.23% to end the day at $21,713. The news that Silvergate Bank plans to voluntarily liquidate sent BTC and the broader crypto market into the red. Technical indicators are bearish, with less than $20,000 in sight.
On Wednesday, Bitcoin (BTC) fell 2.23%. Following a 0.87% drop on Tuesday, BTC ended the day at $21,713. BTC ended the day below $22,000 for the first time since February 13.
A mixed start to the day saw BTC rally to an early high of $22,291. Missing the first major resistance level (R1) at $22,525, BTC slid to a last-hour low of $21,619. BTC fell through the first major support level (S1) at $21,921 and briefly through the second major support level (S2) at $21,634 before ending the day at $21,713.
Silvergate Bank and Fed Chairman Powell Return BTC to Sub-$22,000 Levels
It was a busy day on the US economic calendar. Following Tuesday’s hawkish testimony from Fed Chairman Powell, the US labor market was in the spotlight.
The numbers supported a more aggressive Fed rate path to bring inflation on target. According to ADP, non-farm payrolls increased by 242k in February, against an expected increase of 200k. Payrolls saw a more modest increase of 119k in January.
Following the labor market numbers, Fed Chairman Powell delivered a second day of testimony. However, the markets showed little interest after the sell-off on Tuesday. The NASDAQ Composite Index rose 0.40%. This morning, the NASDAQ mini is down 5.5 points.
On Wednesday, news came that Silvergate Bank was planning to close its doors. The cryptocurrency-friendly bank reported a $1 billion loss in the fourth quarter of 2023, with a bank run leaving the bank with no alternatives. Silvergate Bank reportedly stated that the liquidation plans include a full refund of deposits. The crypto market is expected to face increased scrutiny, as US lawmakers and regulators consider the impact of the crypto market on financial stability.
Bitcoin (BTC) Action Price – Technical Indicators
This morning, BTC was up 0.09% at $21,732. A mixed start to the day saw BTC fall to an initial low of $21,690 before rising to a high of $21,732.
BTC needs to move through the $21,874 pivot to target the first major resistance level (R1) at $22,130 and Wednesday’s high of $22,291. A return to $22,000 would signal a bullish session. US crypto news leads and economic indicators should 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 $22,546 and resistance at $23,000. The third major resistance level (R3) sits at $23,218.
A move through R1 ($22,130) would give the bulls a run on the 50-day EMA ($22,536) and R2 ($22,546). A move through the 50-day EMA would send a bullish signal. However, a failure to break above the 50-day EMA ($22,536) would leave major support levels in play.
By Audy Castaneda
