Major coins were trading in the green on Monday evening after US regulators stepped in to refund deposits at Silicon Valley Bank (NASDAQ:SIVB) and Signature bank (NASDAQ:SBNY), is raising hopes that the near-catastrophic banking meltdown could encourage the Federal Reserve to take a more dovish monetary stance.
| Cryptocurrency | Gains (+/-) | Price (9:30 PM EST) |
|---|---|---|
| Bitcoin | +8% | $24,378 |
| Ethereum | +3.66% | $1679 |
| Dogecoin | +1.43% | $0.072 |
What happened: Apex cryptocurrency Bitcoin (CRYPTO: BTC) rose above $24,000 for the first time in over two weeks. Ethereum (CRYPTO: ETH) was up about 3.60% to change hands above $1,600. Dogecoin (CRYPTO: DOGE) was trading at $0.072, up 1.43% in the last 24 hours.
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At the time of writing, the global crypto market cap was $1.08 trillion, up 4.65% over the last day.
| Cryptocurrency | Gains (+/-) | Price (9:30 PM EST) |
|---|---|---|
| Conflux | +35% | $0.26 |
| Rocket pool | +13.11% | $42.60 |
| OCD | +10.55% | $47.39 |
US stocks ended lower on Monday, as the S&P 500 and Nasdaq Composite fell 0.15% and 0.45%, respectively. Despite the losses, some investors remained hopeful that the economic shock could cause the Federal Reserve to delay rate hikes, helping limit losses.
Crypto-related stock Marathon Digital Holding (NASDAQ:MARA) surged 25% Monday after it announced it still has access to $142 million at Signature Bank.
Investors will be closely watching Tuesday’s release of the February consumer price index as they decide where to place their bets.
See more: Best Crypto Day Trading Strategies
News Highlights: Monday’s explosive Bitcoin rally caught traders expecting a bearish market off guard, resulting in the liquidation of over $81 million in short positions in the cryptocurrency.
Binance announced on Sunday its intention to convert to a value of $1 billion Binance USD (CRYPTO: BUSD) to Bitcoin, Ether, BNB coin (CRYPTO: BNB), and other digital tokens.
Meta Platforms Inc (NASDAQ:META) is halting its digital collectibles initiative to focus on new ways to support creators, people and businesses. One year after announcing plans to allow sharing of digital collectibles on the Instagram platform, Stephane KasrielMeta’s Commerce and Fintech head, tweeted the news of the change.
Analyst Notes: “Bitcoin is on the rise as financial stability risks causing Treasury yields to crash. In an effort to avoid another massive bank run, federal regulators stepped in as some Americans became skeptical of traditional banking,” said Edward Moyasenior market analyst at OANDA.
Moya said Bitcoin’s rally comes at a time when some banks with crypto ties have come under “tremendous pressure.”
“Regulation is not only going to hit crypto, but also the banks. It seems that the biggest one-day rally since the FTX turmoil is a sign that some investors believe that DeFi solutions support the case for holding crypto,” said Moya.
Michael van de Poppefounder and CEO of Eight trade, sees a massive move of Bitcoin towards the next resistance zone at $21,600. With the trend up again, his suggested strategy is to buy the decline on S/R flips in anticipation of a further bullish move. He believes that if the price stops and consolidates around the $23,300 to $23,600 resistance, then altcoins should continue to rise.
Massive move off #Bitcoin.
Now facing the next resistance zone (I couldn’t get $21.6K).
The trend is back up, buying the dip on S/R flips seems the game.
Resistance around $23.3-23.6K, if it stops and consolidates -> #altcoins should continue. pic.twitter.com/DmZZVR8BhY
— Michaël van de Poppe (@CryptoMichNL) March 13, 2023
An S/R flip is a “support/resistance flip.” That’s when support becomes resistance or resistance becomes support.
data analysis platform, Sentiment, recently suggested that FUD (fear, uncertainty and doubt) may have been exaggerated. “It is recommended to keep an eye on the price dominance of Bitcoin vs. other top cap altcoins. BTC had given up a lot of ground to alter to start the year and this could be a nice signal of a trend change for Bitcoin maxis,” the data platform said in a blog post.
According to Santiment, it is recommended to watch out for any significant spikes in FOMO and discussions of a potential $25,000 Bitcoin price. “We saw a pretty big rally when Bitcoin rose above $24,000 earlier today, which seemed to stop the price rally in its tracks. However, if the euphoria subsides a bit, it could be a good sign that we will actually reach this level again, » added the platform.
There has been one #crypto Maxi’s dream scenario today, with banking fears at a multi-year high, and #Fed potentially now cutting (rather than increasing) rates as a result. Our fresh insight covers how this has allowed #Bitcoin and others to create separation. pic.twitter.com/810GfXth9q
— Santiment (@santimentfeed) March 13, 2023
Pseudonymous analyst Caleo was bullish on the last weekly close, noting the clean hammer pulling directly from the heavy support. The analyst believes $40,000 is still a big magnet for Bitcoin.
The last weekly close was so bullish.
Clean the hammer carriage straight from the HTF support.
$40K is still a magnet. pic.twitter.com/5QYDlnqFIk
— KALEO (@CryptoKaleo) March 13, 2023
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