It was a bearish session on Thursday, with BTC tumbling 6.13% to end the day at $20,381. News from Silvergate Bank and US President Joe Biden’s US budget sent BTC and the broader crypto market to red hot. Technical indicators are bearish, with less than $20,000 in sight.
On Thursday, Bitcoin (BTC) fell 6.13%. Following a 2.23% drop on Wednesday, BTC ended the day at $20,381. BTC ended the day below $21,000 for the first time since January 18.
A mixed start to the day saw BTC rally to an early high of $21,836. Failing to reach the first major resistance level (R1) at $22,130, BTC fell to a Thursday night low of $20,086. BTC fell through major support levels, to end the day at $20,086.
US President Joe Biden and Silvergate Bank Sink Bitcoin (BTC)
Thursday’s session was bearish for riskier assets. US economic data took a backseat, with a larger-than-expected rise in US jobless claims failing to ease Fed fears ahead of the US Jobs Report.
Initial jobless claims in the US rose from 190,000 to 211,000, versus an expected increase of 195,000. Following stronger-than-expected ADP and JOLT job listings, investor jitters sent the composite index NASDAQ fell 2.05% on Thursday.
Banking sector woes added to market stress, as investors responded to news that SVB Financial Group (SIVB) announced a $1.75bn share sale to support its balance sheet and to address the impact of falling deposits.
The NASDAQ mini is down 32.25 points this morning. While Fed fears and banking problems weighed on investor sentiment, crypto newswires had the last word.
Additional investor reactions to the collapse of Silvergate Bank and US President Joe Biden’s crypto tax plans weighed on the broader crypto market.
On Thursday, the White House targeted cryptocurrency miners and Biden announced plans to end a cryptocurrency tax strategy in his 2024 budget. According to the announcement, the White House plans to save $24 billion by removing a subsidy. of crypto taxes related to transactions related to cryptocurrencies.
The administration would save an estimated $24 billion by applying similar tax rules to bonds and securities.
Bitcoin (BTC) Action Price – Technical Indicators
This morning, BTC was down 1.15% at $20,146. A bearish start to the day saw BTC drop from an initial high of $20,382 to a low of $20,070.
BTC needs to move through the $20,768 pivot to target the first major resistance level (R1) at $21,449, and Thursday’s high of $21,836. A return to $21,500 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 $22,518. The third major resistance level (R3) sits at $24,268.
A move through R1 ($21,449) would give bulls a run on the 50-day EMA ($22,215) and R2 ($22,518). A move through the 50-day EMA would send a bullish signal. However, a failure to break above the 50-day EMA ($21,215) would leave major support levels in play.
By Audy Castaneda
