Bitcoin Hits $23.7K as BTC Price Analyst Calls SVB Plunge a ‘Bear Trap’

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Bitcoin (BTC) hit its highest level since the beginning of the month on March 13, as US bank stocks saw the biggest massive halt in history.

BTC/USD 1-day candle chart (Bitstamp). Source: Trading View

BTC Price Sees “Phenomenal” Rebound

Data from Cointelegraph Markets Pro and TradingView followed by a fully bullish hourly candle for BTC/USD, which reached $23,725 on Bitstamp.

The move was eagerly awaited by market participants, many of whom had warned of extreme volatility as Wall Street opened.

This came to pass, with Bitcoin and altcoins benefiting from intense uncertainty surrounding banking stocks, especially, early in trading.

The fallout from the The failure of two other US banks over the weekend was keenly felt, not only in the country but also in Europe, where the banks also suffered heavy losses.

“Bitcoin massive move. Now facing the next resistance zone (couldn’t get $21.6,000),” Michaël van de Poppe, Cointelegraph contributor, founder and CEO of trading company Eight, reacted.

“The trend is back, buying the dip on the S/R flips looks like the game. Resistance around $23.3-23.6K, if it stalls and consolidates -> altcoins should continue.

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BTC/USD annotated chart. Source: Michael van de Poppe/Twitter

Trader and analyst Rekt Capital, who previously argued that the monthly candle must close to confirm a longer-term trend break, called Bitcoin’s decline below $20,000 the previous week a “bear trap.” .

“The way BTC recovered in such a short time just shows that the drop to ~$20,000 was a bear trap,” he said. writing in one of many tweets as BTC/USD hit $23,500.

Rekt Capital called the rise “phenomenal” in further analysis, with 18% added from local lows on March 10.

“If $22.4000 remains the new low, that’s all and a bit more that price needs to gain momentum to major resistance in the $24.1000-$25,000 range and really break through,” trader Gaah said. continued.

“We could have more price explosions, be careful in this region.”

Gaah shared a liquidity chart from Caue Oliveira, head of on-chain research and analytics at Brazilian firm BlockTrends:

99c80189 287c 464a b373 b7847e672279 Bitcoin Hits $23.7K as BTC Price Analyst Calls SVB Plunge a 'Bear Trap'
BTC/USD annotated chart. Source: Caue Oliveira/Twitter

Bank stocks halted as contagion spreads to Europe

Outside of crypto, the situation was slowly improving for US equities – with the exception of some banks.

Related: The Fed Launches “Stealth QE” – 5 Things to Know About Bitcoin This Week

Some of the day’s worst performers included First Republic Bank, which fell 76% to see trading halt shortly after the opening bell.

Overall, as entrepreneur Brian Roemmele notedmore US bank stocks have been halted than ever before in history.

In addition to rethinking the likelihood that US Federal Reserve interest rate hikes will continue on March 22, markets have meanwhile also reduce expectations that the European Central Bank would rise 0.5% this week.

Among the day’s European losses was the already beleaguered Credit Suisse, which was down more than 7% to new all-time lows at the time of writing.

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Credit Suisse 1-day candle chart. Source: Trading View

“The problem for Credit Suisse (and others like it) is that it cannot cover deposit flight by borrowing in the money markets. It can only go to the Swiss National Bank, effectively for a second bailout. Will the SNB play ball? Alasdair Macleod, head of research at Goldmoney, interrogates.

The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.