Bitcoin bulls fail to defend critical support above $23,000, with the price falling to a low of $22,342.47.
Due to financial troubles encountered by Silvergate, a bank that was formerly a go-to for the business, cryptocurrency markets are in decline which hampered the expert's Bitcoin price prediction of BTC going par $23K. Concerns have been voiced regarding possible dangers to global crypto liquidity as a result of the bank's problems.
As a consequence of the bank's financial difficulties, the price of bitcoin fell to a two-week low on Friday, with the greatest one-hour price decline since the FTX bankruptcy in November. According to Messari, the coin is currently trading 4% lower at $22,394. Other big coins, like Ethereum, have also suffered losses, sliding 3% to $1,573.
The market downturns have come as a result of multiple firms, including Coinbase, Circle, Galaxy Digital, and Paxos, severing relations with Silvergate, which has delayed its annual report owing to higher losses and prompted concerns about the company's survival.
Crypto Analyst Miles Deutscher took it to Twitter to address the top 5 crypto twist and turn moments and made a thread of “How each of them affected the prices”
Bitcoin is currently worth $22,378.68 USD, with a 24-hour trading volume of $15,651,510,136 USD. Bitcoin has increased by 0.01% in the previous 24 hours. With a market cap of $432,086,744,498 USD, CoinMarketCap now ranks first. It has a maximum supply of 21,000,000 BTC coins and a circulating supply of 19,307,962 BTC coins.
Although market volatility abated in today's session, Bitcoin (BTC) maintained Friday's losses to begin the weekend.
After yesterday's low of $22,213.24, BTC/USD increased earlier in the day to an intraday high of $22,444.19. After Friday's breakthrough, bitcoin has moved back above a long-term support level of around $22,300.
Also, the 14-day relative strength index (RSI) appears to have found a floor, easing the price strength decrease. At the time of writing, the index was trading at 42.89, just above the support level of 42.00.
In a 4-hour chart, Bitcoin price analysis reveals that BTC is stumbling around a critical support level of $22,400, as bears pile pressure on the world's largest cryptocurrency. The RSI signal remains significantly negative, limiting the chances of an upside comeback at this time. If Bitcoin does not get acceptability over $23,000 soon, it will most certainly go back to its prior low of $21,000.
Also, the MACD indicator has recently turned red and is going south in a negative trend. As a result, despite the hints of improvement shown on Wednesday, traders should remain cautious.
The technical signs are negative, and it will take significant buying pressure for BTC/USD to break over the $23K barrier and even attempt a comeback toward its annual highs. Until then, Bitcoin traders may expect further volatility as the world's largest cryptocurrency continues in a slump.
Silvergate's problems stem from the fallout from the FTX crypto exchange's failure in November, which resulted in a run on the bank's accounts. In the United States, the digital-asset industry is facing a bigger regulatory crackdown, and higher interest rates to combat inflation are decreasing risk appetite.
Silvergate fired off 40% of its employees in January, leading company stock (Sl) to fall 40%, from $21 on January 4 to $11 on January 6. In February, the US Department of Justice (DOJ) opened an inquiry into Silvergate's role in the FTX collapse, leading the bank's shares to plunge once again. SI dropped 30% after the DOJ investigation, falling from $20.97 on February 2 to $14 a few days later, after rebounding from the January drop.
Recent events appear to have pushed the bank past the point of no return. Silvergate postponed filing their annual 10-K report with the Securities and Exchange Commission (SEC) until March 1.
According to the statement, "a number of situations" have resulted in the sale of "more investment securities beyond what was originally expected," prompting the bank to reconsider "the impact that these future occurrences will have on its ability to continue as a going concern."
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