It was a bearish Saturday session, with BTC slipping 1.60%, to end the day at $26,914. Profit-taking left BTC at less than $27,000, as investors considered the latest news from Credit Suisse. Technical indicators are bullish, with $30,000 still in sight.
On Saturday, Bitcoin (BTC) fell 1.60%. Partially reversing a 9.14% break on Friday, BTC ended the day at $26,914. Despite the bearish session, BTC avoided sub-$26,000 for the first time since June 2022.
A bullish start to the day saw BTC rally to an early high of $27,621. Missing the first major resistance level (R1) at $28,291, BTC fell to a late-afternoon low of $26,547. However, moving away from the first major support level (S1) at $25,682, BTC revisited the $27,400 level before falling back into negative territory.
Banking Crisis Spreads Beyond US Borders
On Saturday, news broke that the Swiss cabinet was holding a crisis meeting to discuss the future of Credit Suisse Group AG (CS). The report of the cabinet talks coincided with reports that UBS AG has started talks to acquire Credit Suisse Group AG.
According to Reuters, UBS AG (UBS) has asked the Swiss government to cover some $6 billion in costs to acquire the embattled bank. The fallout from the collapse of Silicon Valley Bank and Signature Bank (SBNY) is beginning to show its teeth. The Swiss government has reportedly put pressure on banks to agree terms before the market opening bell rings on Monday.
Reuters also reported that Warren Buffet discussed the banking crisis with senior US administration officials.
BTC and the broader crypto market responded to the news, though the downside was modest, with BTC further demonstrating its safe haven attributes. Credit Suisse shares fell 26.1% last week, and it could become the next victim of the banking crisis.
There were no crypto events to influence investor sentiment, and regulators, as well as lawmakers, had to focus on the banking sector.
As the crypto market considers the latest news, investors should continue to monitor the news wires for banking sector-related news and SEC vs. Ripple updates.
Bitcoin (BTC) Price Action – Technical Indicators
A bullish start to the day saw BTC rally from an opening price of $26,916 to a high of $27,190, before pulling back.
BTC needs to avoid the $27,027 pivot to target the first major resistance level (R1) at $287,508. A move through Saturday’s high of $27.621 would indicate an extended bullish session.
In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $28,101, and resistance at $28,500. The third main resistance level (R3) sits at $29,175.
BTC settled above the 50-day EMA ($24,802). The 50-day EMA has broken further away from the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA sending bullish signals.
A hold above the major support levels and the 50-day EMA ($24,802) would support a break of R1 ($27,508) to target R2 ($28,101) and $28,500. However, a drop through S1 ($26,434) would bring up S2 ($25,953). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda