Planning to trade Bitcoin this weekend? Here’s what you should know
The price of Bitcoin (BTC) has slipped to new levels, a trajectory that has invalidated the asset’s push to regain and hold above $25,000. The latest correction attributed to liquidity concerns at Silvergate Bank has resulted in Bitcoin facing the possible threat of testing new low again into the weekend.
Onchain data from the cryptanalysis platform IntoTheBlockshared by a digital asset analyst by Twitter pseudonym Diamondxbtee March 3, indicates that the virgin crypto has plunged through a significant demand zone at $23,000.
According to the analysis, the trajectory has in turn triggered a strong downward momentum that is likely to push Bitcoin to retest levels below $20,000. However, BTC has an opportunity to rally if it manages to break the $23,700 barrier.
Bitcoin price analysis
Currently, Bitcoin is changing hands at $22,361 after falling over 4% in the last 24 hours. On the weekly chart, BTC is down over 5%.
The recent correction has translated into Bitcoin’s one-day technical analysis facing bearish sentiments. A review of the gauges on TradingView shows that the summary of technical, moving averages and oscillators are in favor of the “sell” sentiment at 14, 10 and 4 respectively.
Consequences of Silvergate banks
Bitcoin is among the assets facing the fallout from the turmoil at Silvergate Capital, a US bank known for its support of cryptocurrencies.
The bank is currently reassessing its ability to sustain operations. This has led many digital asset exchanges, stablecoin issuers and trading entities to refrain from using the popular payment network that enables instant transfers of funds between crypto firms.
As a result, the digital asset industry is struggling with the challenge of finding alternative payment solutions. Currently, the uncertainty from the incident has led to speculation that regulators may crack down on the sector, further dampening cryptocurrencies’ ability to exit the bear market.
According to a Finbold report, the Silvergate liquidity event has been identified as the main ‘short-term sentiment killer’. The fallout saw Bitcoin also lead the market in wiping out around $50 billion in capital.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
