It was a bullish Sunday session, with BTC gaining 3.82%, to end the day at $27,943. The news of the acquisition of Credit Suisse Group AG by UBS AG was positive for the market. Technical indicators are bullish, with $30,000 still in sight.
On Sunday, Bitcoin (BTC) rose 3.82%. Reversing a 1.60% drop since Saturday, BTC ended the week up 26.54% at $27,943. BTC returned to the $28,000 handle for the first time since June 12. Notably, BTC gains came at the expense of Credit Suisse Group (CS), which ended the week down 26.10%.
Range-bound throughout the morning, BTC fell to an early low of $26,838 before making a move. Moving away from the first major support level (S1) at $26,434, BTC rallied to a late high of $28,342. BTC broke above the first major resistance level (R1) at $27,508 and briefly through the second major resistance level (S2) at $28,101 before ending the day at $27,943.
BTC Responds to the Acquisition of Credit Suisse Group AG by UBS AG
On Sunday, news broke that UBS AG (UBS) has agreed to acquire Credit Suisse Group AG (CS). Prior to the deal, the banking crisis had shed light on BTC and the crypto market in general. Regulators and lawmakers may need to change tactics, as the collapse of two US banks and UBS’s takeover of Credit Suisse are a tough call for investors in more traditional asset classes.
US Senator Elizabeth Warren called for an investigation into the collapse of Silicon Valley Bank and Signature Bank (SBNY), noting that they were the second and third-largest bank failures in US history. Senator Warren was scathing, holding bank executives and the Federal Reserve accountable for regulatory backsliding that allowed failures to occur.
News related to the banking sector will continue to influence investor confidence, and central bank talk will also be in the spotlight. A banking crisis-driven shift in central bank monetary policy away from aggressive policy objectives to curb inflation would support riskier assets. However, while investors consider the latest news, investors should continue to monitor news and updates from Binance and FTX of the ongoing SEC vs. Ripple case.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC was down 0.25% at $27,872. A mixed start to the day saw BTC rally to an early high of $28,024 before falling to a low of $27,872.
BTC needs to avoid the $27,708 pivot to target the first major resistance level (R1) at $28,577. A move through the Sunday high of $28.342 would signal 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 $29,212, and resistance at $30,000. The third major resistance level (R3) sits at $30,716.
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 ($25,411) would support a break out of R1 ($28,577), to target R2 ($29,212) and $30,000. However, a drop-through S1 ($27,073) would bring into view S2 ($26,204) and the 50-day EMA ($25,411). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda
