Bitcoin (BTC) plunges 5% in the early hours of the Asian session. A next wave of FTX-like depression seems imminent. This time it’s Silvergate’s turn to shake up the crypto market.
Bitcoin (BTC) drops 5% in Asian session
The largest crypto by market capitalization lost more than 5% in value earlier today. During the open of the Asian session, the price of bitcoin (BTC) dips below the weekend low. Other high market cap cryptos suffered the same fate, such as ether (ETH). As of this writing, the king of cryptos is trading around $22,500. It is the first scenario of our analysis of March 01 which has been confirmed. Moreover, the first objective has already been achieved. Indeed, after making a false break from Monday’s high, BTC is breaking through the weekend low. At this rate, it is highly likely that the price will descend towards the psychological zone of $20,000.
This drop in bitcoin (BTC) is due to the precarious situation of Silvergate. Indeed, this crypto-bank reports a loss of $ 1 billion in the fourth quarter, while the massive withdrawals of investors continue. Following this, the value of this crypto company drops on the New York Stock Exchange. Thus, a second wave of depression like in November seems imminent. We could thus consider the breakout of the next support at $21,368.
More drop to come
Bitcoin (BTC) has already shown correction signals since February. On the daily scale, the RSI is beginning to drop below 50. This shows mounting bearish pressure. We could therefore consider the breakout of the bottom at $21,368. Moreover, it should be noted that the fall of FTX caused a drop of more than 25% in BTC. If the same scenario happens again, the price may go down towards $18,000. Thus, we will bet on a drop in price for today.
For those who have already sold bitcoin (BTC) at $24,150, the position can stand. For those wishing to sell now, the 61.8% fib level of the Asian range looks interesting. We can therefore envisage the return of the price to this level, before starting to fall again.
How it works ?
You can place your orders as follows:
Entry point: $23,000
Stop: $23,600
Goal 1: $21,368
Objective 2: $20,000
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