Bitcoin Price Prediction as BTC Shoots up $22K

    Pathik Bhattacharya
    Pathik Bhattacharya
    Published on March 13, 2023 01:30 PM

    Bitcoin prices fluctuate severely as Silicon bank crisis rises up due to which the stablecoin market is affected heavily resulting in price spikes.

    Bitcoin Price Prediction as BTC Shoots up $22K
    Source: unsplash

    Bitcoin price prediction was the talk of the town when Bitcoin's price fell below $20K on Friday owing to uncertainty at Silicon Valley banks. Nevertheless, Bitcoin recovered its downward trend and surpassed $20,000 on Saturday, owing to a weaker US dollar, which fell after February labour data showed slower pay growth, signalling a reduction in inflationary pressures.

    Experts predict that if the Federal Reserve reduces the pace of interest rate increases, the US dollar would lose value, resulting in more demand and higher prices for cryptocurrencies. This is wonderful news for experts who are confident in their Bitcoin price prediction.

    Expert's Bitcoin price prediction appeared to be correct, as Bitcoin, Ether, and many other altcoins surged on Monday after the stablecoin market crashed. This occurred because USD Coin (USDC), the second largest stablecoin by market value, briefly lost its peg to the US dollar following the bankruptcy of Silicon Valley Bank, which had around US$3 billion in deposits.

    USDC fell to US$0.8774 on Saturday, and its market value fell 15% to US$36 billion from US$43 billion. Nevertheless, the issuer of USDC, Circle, stated that it has the liquidity to maintain USDC and that it would continue to be convertible 1:1 with US dollars.

     As a result, USDC returned to its US dollar peg in Asia, and its market capitalization increased, creating a spark in the stablecoin market capitalization, which later resulted in a price surge in the respective Crypto trading pairs.

    According to Chinese journalist Colin Wu, numerous Bitcoin whales were detected buying $25,000 strike call options for April expiry and selling the same strike call options for June expiration. All eyes are on Bitcoin price prediction, and experts believe that the price of Bitcoin is likely to rise in the near future, given the current market conditions.

    Bitcoin Price Prediction

    At the time of writing, the price of Bitcoin is $22,473.81 USD, with a 24-hour trading volume of $36,062,595,008 USD. Bitcoin has increased by 9.35% in the previous 24 hours. BTC is ranking first on CoinMarketCap, with a market cap of $434,108,076,896 USD. It has a total quantity of 21,000,000 BTC coins and a circulating supply of 19,316,175 BTC coins.

    BTC price chart

    Source: CoinMarketCap

    Bitcoin Price Prediction: Weekly Chart

    The bulls successfully defended the 20k critical support level, and the price is already bouncing back. To confirm the breakout, Bitcoin bulls must first clear the critical 25k resistance level.

    If the bulls break over the $25,000 resistance level, we might expect a significant +40-50% bullish rally in April. This would affect the Bitcoin price prediction positively as more investors will get along with the price surge. 

    The 50 Days moving average is also looking fine at $22K which is a positive sign. The current RSI is at 52 which means that Bulls are entering the market and we could see the RSI goes above 60.


    Bitcoin Price weekly chart

    Source: TradingView

    Bitcoin Price Prediction: Daily Chart

    The Bitcoin price analysis 24-hour chart shows that the market is continuing in a favourable direction, sustaining momentum above the $22K barrier. The BTC market had been on a continuous negative trend for the last few days, but the USDC de-pegging rebound the prices back up, with the bulls controlling the market. In the previous 24 hours, the BTC/USD market has gained about 1.76 percent, and it is expected to maintain its upward trajectory in the near future.

    The Moving Average Convergence Divergence (MACD) indicator is in the red zone, according to the technical indicators. In the daily chart, the MACD line is trading above the signal line and could exhibit green histograms at any moment to support the bull run.

    Bitcoin Price Daily Chart

    Source: TradingView

    The Silicon Valley Bank crisis, as well as the accompanying instability in the world's second-largest dollar-pegged stablecoin, USD Coin (USDC), has resulted in bitcoin (BTC) trading at substantially higher prices on crypto exchange Coinbase (COIN).

    According to CryptoQuant data, bitcoin's Coinbase Premium Index - which gauges the disparity between BTC's US dollar-denominated pricing (BTC/USD) on US-based Coinbase and BTC's tether-denominated price (BTC/USDT) on offshore colossus Binance - increased to 0.8, the largest since March 2020.

    Bitcoin trading at a premium on Coinbase is frequently interpreted as greater purchasing pressure from US institutions and professional traders.


    Bitcoin coinbase premium index

    Source: CryptoQuant

    However, not all the metrics are on the same track. Bitcoin balances on exchanges fell short and made a downfall on Monday leaving the exchanges with low Bitcoin exchange inflows. The same happened on 11th march according to a crypto analysis Twitter page “Glassnode alerts”.

    Bitcoin Price Prediction May Goes up as Binance Plans to Convert $1B BUSD to Bitcoin

    Binance exchange said that it will convert $1 billion in Binance USD (BUSD) to Bitcoin (BTC), ether (ETH), BNB coin (BNB), and other tokens to support the market.

    Binance CEO Changpeng Zhao claimed in a tweet on Monday that the transaction from Binance's industry fund to BUSD took 5 seconds and cost only $1.29.

    The move is likely to have increased purchasing pressure. In Asian hours on Monday, bitcoin surpassed $22,500, while ether reclaimed the $1,600 market. According to CoinGecko statistics, BNB increased by more than 10% to trade above $300, reaching two-week highs.