The bankruptcy of Silicon Valley Bank was recorded as the largest banking bankruptcy in the USA after the 2008 crisis.
The bankruptcy of Silicon Valley Bank was the final blow to the crypto market as well. Today, we will examine what is happening in the crypto money market and Bitcoin price analysis.
Silicon Valley Bank’s Bankruptcy Hurts the Market
Silicon Valley’s bankruptcy created heavy traffic over the weekend. Most affected by the company’s bankruptcy was Circle, the issuer of USDC, the second largest stablecoin asset in the crypto market. Circle’s announcement that it had $3.3 billion in the bank caused the markets to panic. In the weekend trading, intense USDC sales occurred during the hours when the banks were closed, and the asset lost its 1 dollar stability and regressed to the 0.8 dollar band.
In the statement made by Circle, a commitment was made that there was a temporary liquidity problem as banks were closed over the weekend and that the stability of USDC would improve at the opening of the week. After this statement, USDC started to rise and managed to reach the level of $ 1 again in the first hours of the week.
After these crises, a statement came from the FED at the weekend and the US Federal Reserve announced that it would facilitate access to the discount window to help banks. The US Federal Reserve announced that it is considering easing the conditions for banks to access the discount window so that another Silicon Valley Bank-like collapse does not occur. The Fed also said it would increase the capacity of banks to meet depositors’ withdrawal requests without having to record losses by selling bonds and other assets whose value fell as interest rates rose.
Bitcoin Price Analysis
Bitcoin price continues to be priced at $22,462 with a 9.81% rise it is currently experiencing. Bitcoin, which started the day with a bullish streak, rallied to an early peak of $22,698 before pulling back.
Bitcoin price, which is at $22,462 at the time of writing, must avoid below the $21,544 level to target the first resistance level at $22,732. A move towards the morning high of $22,698 could signal a long bullish session.
In the case of an extended rally, bitcoin price will likely test the second resistance level at $23,380. The third resistance level of the asset is located in the $25,216 region.
A drop from $21,544 would activate the major support level at $19,896. However, in case of eventual selling pressure, BTC should avoid $20,000 and the second support level at $19,708. Bitcoin’s third support level is located in the $17,872 region.
A hold above the 200-days EMA ($22,322) would support a breakout of $22,732 to allow the bulls to rush to $23,380. However, a drop in the 200-day EMAs of 22,322 and the 100-day EMAs of $22,014 could make the 50-day EMA (21,384) visible. A drop at the 50-day EMA signals a bearish move.
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