It was a bearish Friday session, with BTC shedding 0.88%, to end the day at $20,201. Banking sector woes, US economic indicators, as well as the NASDAQ Composite, sent BTC and the broader crypto market into the red. Technical indicators are bearish, with less than $18,500 in sight.
On Friday, Bitcoin (BTC) fell 0.88%. Following a 6.13% drop on Thursday, BTC ended the day at $20,201. BTC ended below $20,000 for the first time since January 14 and extended its losing streak to five sessions.
A bearish start to the day saw BTC fall from an early high of $20,382 to a late-morning low of $19,592. BTC fell through the first major support level (S1) at $19,699, before a partial recovery during the afternoon session. BTC briefly reviewed the $20,300 handle, before pulling back to end the day at $20,201.
US Banking Troubles, Fear of the Fed and Biden Weigh on Sentiment
Fed Fear continued to put pressure on BTC and the broader crypto market on Friday. US economic indicators were supportive in the afternoon, although immediate gains in response to the US Jobs Report were short-lived.
US Non-Farm Payrolls increased by 311k in February, versus an expected 205k increase. In January, Non-Farm Payrolls increased by 504k. While the headline numbers were bullish, wage growth slowed, and the US unemployment rate increased from 3.4% to 3.6%.
Softer wage growth and a rise in the US unemployment rate were bearish, though unlikely enough to force the Fed to reconsider its more aggressive policy targets.
While the statistics generated interest, US banking problems weighed on the NASDAQ Composite Index and the crypto market. Contagion fears in the financial sector weighed on riskier assets. Investors responded to the news that regulators have shut down SVB Financial Group (SIVB).
The NASDAQ Composite Index fell 1.76% on Friday, and the Dow and S&P 500 posted losses of 1.07% and 1.45%, respectively.
Weighted by contagion fears, intensifying scrutiny from regulators and lawmakers continued to test buyers’ appetites. This week, the US administration resumed its battle against cryptocurrencies and removed a cryptocurrency tax subsidy as part of the 2024 budget.
Bitcoin (BTC) Price Action – Technical Indicators
A mixed start to the day saw BTC drop to an initial low of $20,185, before rising to a high of $20,789. BTC briefly broke above the first major resistance level (R1) at $20,525.
BTC needs to avoid the $20,058 pivot to refocus the first major resistance level (R1) at $20,525, and the morning high of $20,789. A return to $20,700 would indicate a prolonged 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 $20,848, and resistance at $21,000. The third major resistance level (R3) sits at $21,638.
BTC sat below the 50-day EMA ($21,761). The 50-day EMA turned back from the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA, providing bearish signals.
A move through R1 ($20,525) would give the bulls another run into R2 ($20,848) to bring R3 ($21,638) and the 50-day EMA ($21,761) into view. A move through the 50-day EMA would send a bullish signal. However, a failure to move through the 50-day EMA ($21,761) would leave the bears in control.
By Audy Castaneda
