Bitcoin prices surged nearly 20% at the open on Wall Street in a few days, as many bank stocks closed due to steep losses.
Bitcoin
BTC
Tickers are down
$24,646
On March 13, shares of US banks reached their highest level since the beginning of the month, showing the biggest decline in history.
BTC Price Sees ‘Remarkable’ Rise
Data from Cointelegraph Markets Pro and TradingView tracked a bullish hourly candle for BTC/USD at $23,725 on Bitstamp.
The move was eagerly awaited by market participants, many of whom had warned of open volatility on Wall Street.
Bitcoin and altcoins are known to benefit from the strong uncertainty surrounding bank stocks, especially when they trade.
Over the weekend, the effects of the two US bank failures were felt not only at home, but also in Europe, where banks also suffered huge losses.
“Bitcoin’s Massive Movement. Now I hit the next resistance zone (I didn’t reach $21.6k),” explained Cointelegraph contributor Michael van de Poppe, founder and CEO of trading firm Eight.
“The trend is resuming and buying low on S/R flips looks like a play. Resistance around $23.3-23.6k, if it stops and consolidates -> altcoins should continue.
Trader and analyst Rect Capital, who previously believed that a monthly candle close was needed to confirm a long-term trend break, calls bitcoin’s depth below $20,000 a “bear trap.”
“BTC’s short-term recovery path suggests that the fall to ~$20,000 is a bear trap,” he wrote in one of several tweets, as BTC/USD reached $23,500.
In further analysis, Rect Capital added 18% against the local low since March 10, calling the high “incomplete”.
“If $22.4k holds as a new level, that’s all, and this price should push and break the key resistance in the $24.1k-$25k range,” continued trader Gah.
“We may have price explosions, be careful in this area.”
Gah shared the liquidity chart of Ko Oliveira, head of research and network analysis at Brazilian crypto insight firm Blocktrends:
As the pandemic spreads across Europe, bank stocks have ground to a halt
Outside of cryptocurrencies, the picture has slowly improved for US stocks, with the exception of some banks.
Related: Fed Begins ‘Stealth QE’ – 5 Things to Know About Bitcoin This Week
Among the worst performers of the day was First Republic Bank, which lost 76% as it halted trading shortly after the opening bell.
Overall, as entrepreneur Brian Rommel notes, more US bank stocks have been canceled than at any other time in history.
Markets are discounting expectations that the European Central Bank will raise 0.5% this week, as the US Federal Reserve reconsiders the possibility of continuing to raise interest rates on March 22.
European losers for the day included already troubled Credit Suisse, which was down more than 7% at the time of writing.
“The problem with Credit Suisse (and others) is that the deposit flight cannot be covered by money market borrowing. He can only go to the Swiss National Bank, in effect for a second bailout. Does SNB play ball?” asked Alasdair McLeod, head of research at GoldMoney.
