After suffering significant losses on Friday due to the spread of potential contagion risks from the failure of Silicon Valley Bank to crypto markets, Bitcoin and Ethereum have experienced significant gains in the past 24 hours. In the midst of such banking sector catastrophes, the crypto community was reminded of the core fundamental principles that underpin Bitcoin and the reasons why it was first introduced in weeks following the collapse of Lehman Brothers in 2008.
Bitcoin’s Price Retains $20K
Despite the fact that the broader crypto market is reeling under intense pressure from the ongoing stablecoin crisis — which was initiated by USDC’s $3.3 billion exposure to the troubled bank — Bitcoin’s price, however, has valiantly held on to the $20K level. The flagship cryptocurrency has been on a roller-coaster ride this year, with BTC breaking past the psychological barrier of $25K and then retracing back to the $19k zone, all within a span of few short months.
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Following the widespread media coverage of USDC and other reported stablecoins losing their $1 peg, the total crypto market capitalization dropped below $920 billion for the first time since November, and in the past day alone, over $200 million worth of crypto-tracked futures contracts have been liquidated. The liquidation of Bitcoin futures reached about $60 million, the highest amount among major cryptocurrencies. Yet, even that has not been enough to rattle Satoshi’s precious creation, which according to the price chart, is currently exhibiting a healthy pullback in preparation for an even larger recovery.
Bitcoin Gunning For Bull Run?
According to a prominent crypto analyst, Bitcoin’s price is reflecting similar patterns that are comparable to those observed in 2015 and 2020, just before BTC embarked on a massive bull run. From a purely statistical perspective, this has occurred roughly six times in 2015 and twice in 2020. In addition, he further emphasizes on the fact that Bitcoin is adopting a slow and “methodical” approach of 2015, which would be gradual but is almost certain to take place.
So far, #Bitcoin is displaying the same qualities as the healthy pull backs to the midline of the envelope
This happened 6 times in 2015, and 2 times in 2020 right before entering parabolic runs
Bitcoin is taking the slow methodical approach of 2015, up, slowly but surely pic.twitter.com/hnAxDcEwd9
— CryptoCon (@CryptoCon_) March 11, 2023
Additionally, it should be noted that BTC’s technical analysis (TA) indicators at CoinGape’s crypto market tracker recommend a “Sell” position as summarised by its moving averages. And, as things currently stand, the price of Bitcoin (BTC) is trading at $20,322 which represents a gain of 1.20% over the past 24 hours, in contrast to a drop of 9% recorded over the last seven days.
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