Short-term “sentiment killer” could lower Bitcoin price
The value of Bitcoin (BTC) is facing renewed bearish sentiment as the crypto market grapples with uncertainty stemming from concerns over the sustainability of digital asset-friendly bank Silvergate. This situation has resulted in a lot of interest in how the Bitcoin price movement will react in the coming days.
A cryptanalyst by Twitter pseudonym Share moneyL in a chirping March 3 stated that Silvergate liquidity concerns are a Bitcoin ‘short-term sentiment killer’.
With the situation putting pressure on Bitcoin’s price, the analyst identified the $21,400 level as the next support position if the virgin cryptocurrency fails to overcome the $22,800 resistance.
Silvergate bank fallout
The estimates come after Bitcoin suffered a sharp fall in the wake of Silvergate, and stated that it was evaluating its ability to continue operations and that it was reassessing its businesses and strategies.
Silvergate also noted that it faced a bank run late last year, which led to the sale of its assets at a loss, which affected its overall capitalization. The uncertainty has resulted in the possibility of increased regulatory intervention, given that the lender is a member of the Federal Reserve System.
Interestingly, crypto trading expert and analyst Michaël van de Poppe warned that the Silvergate situation mirrors the Mt.Gox hacking incident and investors should expect further fallout from the situation.
“Silvergate crashes yesterday and the markets are down. Within a span of 12 hours we are talking about Mt. Gox, the worst that could happen with Ethereum (ETH) unlocks, Tether about to collapse, Big Crisis about to happen and more. Typical crypto,” he said in one chirping on 3 March.
Bitcoin price analysis
At press time, Bitcoin was trading at $22,339, representing daily losses of around 4%. On the weekly chart, BTC is down almost 7%.
Bitcoin’s current level comes after the asset fell by over $1,000 within 60 minutes from $23,500 to $22,240.
Finally, Bitcoin’s renewed selling pressure has pushed the cryptocurrency’s market cap to reach $431.9 billion.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
