There are only ten days into March, and volatility in the crypto markets has heightened, with both bitcoin and ethereum falling to two-month lows. A collapse in Silvergate Bank was one of the major catalysts leading to this month’s bearish sentiment, which now sees bitcoin trading under $20,000. With over three weeks remaining in March, what could be next?
Current Market Status
Non-farm payrolls in the U.S. were released earlier today, coming in at 311,000, better than the 205,000 expected, however, this has been of little consequence, unlike in previous months.
This is due to the collapse of two banks, firstly Silvergate, and later Silicon Valley Bank, which have both moved to cease operations.
The fallout of this, in particular crypto-lender Silvergate, has spooked markets in recent days, after failing to provide its annual report to the Securities and Exchange Commission (SEC).
In addition to this, Federal Reserve chair Jerome Powell hinted that interest rates could be raised higher than initially expected, as the battle with inflation continues.
All of these factors have contributed to this month’s red wave, which has been mostly present in the first few days of March.
Earlier in today’s session, BTC/USD fell to a low of $19,628.25, which is its weakest point since January 13.
The move came following a breakout of a key price floor at $20,300, and bulls have attempted to move the price back toward this level.
Bitcoin chart by TradingView
In the grander scheme of things, the sell-off means that BTC is now severely oversold, with its 14-day relative strength index (RSI) tracking at 27.22.
This is the weakest reading for the index since November, and in the long-term is a positive for bulls, as it signals that a bottom is close, if not already hit.
Should this be the case, bitcoin could gradually rebound in the upcoming weeks, following a spell of consolidation, which could come following the upcoming Fed rate decision.
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