Bitcoin surges to $29,000
FUNDAMENTAL OVERVIEW
Some investors cited anticipation that the Federal Reserve will inject money into the economy in the coming weeks in response to symptoms of yet another U.S. bank failure as the reason why Bitcoin (BTC) increased to $29,000 on Wednesday morning in Europe. According to Trading View statistics, the level was last reached on April 20.
Tuesday saw a 50% decline in First Republic Bank (FRC) stock after the San Francisco-based lender disclosed a sharp decline in deposits. Investors withdrew more than $100 billion from the bank this quarter, raising fears that it will fail, joining Silicon Valley Bank and Signature Bank, as the third bank.
The decline pressured U.S. markets, with the tech-heavy Nasdaq 100 falling roughly 2% and the Dow Jones Industrial Average losing 1%. In contrast, bitcoin has increased 6.4% over the previous day, following safe-haven assets like gold in nearly reversing all the losses from the sell-off last week.
Cardano (ADA) and Solana (SOL) token increases of more than 7% led advances among significant tokens, contributing to a 4.9% increase in the total market capitalization of cryptocurrencies.
Some commentators hypothesised that the rally resulted from anticipation of a Fed liquidity injection intended to safeguard its capital markets.
As a result, Bitcoin is beating these predictions. It will be extremely challenging for the Fed to continue adhering to its tightening policy moving forward since cracks in the financial system are widening, even if they are doing so softly right now, he added. “The recent Bitcoin rally has more to do with liquidity injections and growing expectations that the Fed’s tightening will likely have to end fairly soon, or else even more instability in the banking sector may result.”
BTC/USD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview
Bitcoin is currently trading in up channel.
Bitcoin is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
Bitcoin resistance is at 29419.40 & its immediate support level is 28841.67
HOW TO TRADE BITCOIN
A bearish engulfing emerged when Bitcoin was trading higher until it faced resistance. After that, the price started to decline. Again, going upward, it recently broke through the resistance zone and the previous day’s high. Furthermore, upside is expected.
