Cryptos get hammered, Bitcoin falls to support $22,400
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(Kitco News) – Crypto prices were hammered in trading on Friday amid growing concerns that Silvergate Bank, the former banking partner of many of the crypto industry’s biggest names, is “less than well capitalized” and could be the next big domino that falls in the crypto ecosystem.
The traditional markets, on the other hand, were firing on all cylinders as stocks edged higher on the sight of a small retreat in the 10-year Treasury and the latest service data showing economic activity picked up in February. The S&P, Dow and Nasdaq all ended the week in the green, up 1.61%, 1.17% and 1.97% respectively.
Data from TradingView shows that Bitcoin (BTC) bears launched their attack on bulls in the early morning hours on Friday, pushing the top crypto to a daily low of $22,252 and maintaining pressure throughout the afternoon, keeping BTC below $22,500.
BTC/USD 4-hour chart. Source: TradingView
Friday morning’s smackdown resulted in March bitcoin futures prices hitting “a three-week low in early US trading,” according to Kitco senior technical analyst Jim Wyckoff, who added that “bulls have lost their small overall technical advantage in the near term as a price. uptrend on the daily chart has been negated.”
“Prices are now in an incipient downtrend and bears have some momentum,” Wyckoff warned.
Crypto Market Psychology
Insight into the price level that bears are now closely watching was provided by market analyst Crypto Tony, who posted the following tweet highlighting the $22,300 support/resistance level as one to watch.
$22,300 is the level this weekend for the bears. Turn it into resistance and we continue the brief failure 👇 pic.twitter.com/ooo4RrphTP
— Crypto Tony (@CryptoTony__) March 3, 2023
A more positive view of a similar scenario was provided by crypto investor Pentoshi, who posted the following chart outlining a continuation of the current decline followed by price recovery.
I would like to see this
and would love to play it for a spin pic.twitter.com/oQLzyecJyy
— Pentoshi 🐧 (@Pentosh1) March 3, 2023
And Eight Global founder Michaël van de Poppe offered the following insight on why trading the crypto market can be a difficult proposition, stressing the need to develop a trading plan and stick to it.
People were so eager to buy in #Crypto two weeks ago.
People are now so eager to sell theirs #Crypto.
Reverse that psychology.
— Michaël van de Poppe (@CryptoMichNL) March 3, 2023
A sea of red in the altcoin market
Friday was a bloodbath in the altcoin market, and while a handful of tokens managed to see small gains, the fact that more than 20 tokens in the top 200 recorded double-digit losses says a lot about the experience of crypto traders on Friday.
Daily performance in the cryptocurrency market. Source: Coin360
SingularityNET (AGIX) suffered the biggest losses of the day, down 14.04% to trade at $0.4569, while BinaryX (BNX) recorded a 14.01% decline and dYdX (DYDX) fell 13.5%.
The total cryptocurrency market cap is now at $1.024 trillion, and Bitcoin’s dominance rate is 42.1%.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.
