It was a bullish Sunday session, with BTC rising 7.57% to end the day at $22,083. US regulators provided a working session where Silicon Valley Bank clients were able to withdraw all deposits, starting today. Technical indicators turned bullish, with less than $23,000 in sight.
On Sunday, Bitcoin (BTC) rose 7.57%. Following a 1.62% gain on Saturday, BTC ended the day at $22,083. Significantly, BTC returned to the $22,000 level for the first time since March 8.
After a range-bound morning, BTC fell to a mid-afternoon low of $20,357. Moving away from the first major support level (S1) at $19,998, BTC surged to a last-hour high of $22,193. BTC broke through the first major resistance level (R1) at $20,924 and the second major resistance level (R2) at $21,320, to end the day at $22,083.
US Regulators Offer Broad-Based Crypto Rally
On Sunday, Silicon Valley Bank remained the focal point of the market. During the afternoon session, US regulators announced that all clients would have access to their deposits from Monday.
Significantly, the Federal Reserve created a new Bank Term Financing Program to offer loans with a maturity of one year to depository institutions. Institutions would pledge Treasury bonds and other held assets.
On Sunday, regulators shut down Signature Bank, which faced a similar problem, with regulators protecting all depositors. USD Coin (USDC) also provided support, with the rebalancing in the works.
After Sunday’s news about Silicon Valley Bank, Circle no longer needs to worry about addressing the $3.3 billion shortfall. This morning, the USDC was up 2.72%, at $0.9928.
More market reaction is expected to news of US regulators bailing out Silicon Valley Bank depositors and tackling SVB contagion.
However, markets should continue to monitor news and updates from Binance and FTX of the ongoing SEC vs. Ripple.
Bitcoin (BTC) Price Action – Technical Indicators
BTC needs to avoid the $21,544 pivot to re-target the first major resistance level (R1) at $22,732. A move through the morning high of $22,698 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 $23,380. The third major resistance level (R3) sits at $25,216.
BTC settled above the 200-day EMA ($22,322). The 50-day EMA turned down to the 200-day EMA, with the 100-day EMA reaching the 200-day EMA, providing bullish signals.
A hold above the 200-day EMA ($22,322) would support a break from R1 ($22,732) to give the bulls a run into R2 ($23,380). However, a drop through the 200-day EMA ($22,322) and 100-day EMA ($22,014) would bring the 50-day EMA ($21,384) into sight. A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda
