The banking crisis in the United States has prompted aggressive buying of Bitcoin and select altcoins nearing tough overhead resistance levels.
Three banks – Silvergate Bank, Silicon Valley Bank and Signature Bank – collapsed in a matter of days, fueling demand for US Treasuries and pushing the 2-year Treasury yield down to 4.06%, down from 100% basis points from March 8th.
It was the biggest three-day drop since Oct. 22, 1987, when yields fell 117 points after the stock market crash.
Although the Federal Reserve announced a $25 billion bank financing program to support businesses and households, on March 13 regional banks took aim. This shows that stock traders are nervous.
However, seeing Bitcoin amid all the chaos is an encouraging sign
BTC is one thing
The ticker is down
$24,654
Leads cryptocurrency recovery from scratch. Bitcoin climbed back above $24,000 on March 13, a far cry from the local low of $19,549 on March 10.
Can Bitcoin and Major Altcoins Sustain Their Short-Term Upside Momentum? Study the table to find out.
The SPX is
The S&P 500 (SPX) index fell below the 200-day simple moving average or SMA (3,940) on March 9th before making another move lower on March 10th.
A break below the 200-day SMA is a bearish signal, but if the price quickly recovers and scales back above the level, it will suggest that the break on March 9 could be a bear trap.
The index could rally after buyers pushed prices above the 20-day exponential moving average or EMA (3,986). There is minor resistance at 4,078 but it is likely to be breached. The index could then rise to 4,200.
On the downside, breaks and closes below 3,764 suggest traders are rushing for the exit. That next support is at 3700 and then 3650.
DXY is the source
The US Dollar Index (DXY) rally stalled just below the 200-day SMA (106). This suggests that the bears are trying to turn this level into resistance. The sell-off pulled the price below the 20-day EMA (104) on March 13.
The flattening 20-day EMA and the Relative Strength Index (RSI) just below the midpoint are suggesting a balance between supply and demand. Therefore, the index could stay in a range between 101 and 200 days SMA for some time.
If the price eases off and falls below the support near 101, the index will complete a head and shoulders (H&S) pattern. The establishment of this downturn could trigger the next phase of the decline.
Conversely, a break above the 200-day SMA would attract buyers who could then propel the price to 108 and then 110.
BTC/USDT
There are bitcoins
BTC is one thing
The ticker is down
$24,654
The price rebounded from the 200-day SMA ($19,717) on March 10, accelerating the recovery after a break above $21,480. This suggests that the lower levels are attracting buyers.
The bulls continued their uptrend and broke the $22,800 barrier on March 13. This leaves the gates open for a retest of the tough overhead resistance at $25,250. If buyers clear this hurdle, the BTC/USDT pair could see aggressive short covering. That could bring in $30,000.
Conversely, if overhead resistance pulls the price down, the pair could oscillate between the 200-day SMA and $25,250 for some more time. Such a move would be a positive sign and would increase the chances of a break above the overhead resistance. This bullish view may be invalidated if the price falls and falls below the 200-day SMA.
The ETH/USDT
There is ether
ETH is
The ticker is down
$1,694
bounced off the support near $1,352, indicating aggressive buying at the lower levels. The recovery strengthened after the bulls were pushed back above $1,461.
The ETH/USDT pair moved back above the 20-day EMA ($1,565) on March 12, suggesting that the bulls are back in the game. Buyers will next look to extend the relief rally to overhead resistance at $1,743.
The 20-day EMA and RSI flattening in positive territory suggests momentum is in bulls’ favor. If buyers break this resistance at $1,743, the pair could rally to $2,000 on a psychological level.
BNB/USDT
BnB is one thing
BnB is one thing
The ticker is down
$310
