Brace yourselves, folks, as Bitcoin has just gone on a wild ride that nobody saw coming! The cryptocurrency just took a massive nosedive, crashing to $22,000 and wiping out a whopping $58 billion from the entire crypto market!
Where is Bitcoin headed next week? Let’s find out.
Previous Analysis
BTC/USD Chart by Tradingview
Last week, Bitcoin experienced a bullish signal in the financial trading world as the 50-day moving average crossed above the 200-day moving average. It dropped to $22k before finding support and bouncing back to $25k. However, $25k proved a strong resistance for the bulls, who were preparing for another attempt at breaking it.
Bitcoin Next Week?
BTC/USD Chart by Tradingview
Bitcoin is looking forward to a week of uncertainty. BTC is currently trading above the 50-day and 200-day moving averages. This is bullish for the asset generally. Even though some devastating news hit the market yesterday, positive news streamed in today. The real question is which of these fundamentals has a stronger impact on the price of Bitcoin.
We expect BTC to bounce off this fairly strong support to $25k. If the bull power is strong enough, the resistance at $25k should be broken, and BTC should rise to $28k, where the next resistance is expected to form.
Bearish Catalyst
Silvergate Bank is a US commercial bank that provides financial services to businesses in the fintech and crypto industries. It’s considered a gateway to the crypto market.
However, it recently experienced a bank run when major clients announced they would suspend business with the bank due to a review of its books by regulators and the US Department of Justice.
This caused Silvergate’s shares to plummet more than 50%, leaving the bank’s future uncertain and the crypto market in turmoil.
Bullish Catalyst
A new “groundbreaking” crypto index 401(k) has been launched, providing access to a $7 trillion market for Bitcoin and Ethereum investors. This innovative retirement plan is expected to appeal to young investors keen to include digital currencies in their portfolios.
ForUsAll, a San Francisco-based 401(k) provider, launched this new feature, allowing employees to invest a portion of their 401(k) directly into the cryptocurrencies of the Coindesk Market Select Index (CMIS). The CMIS index, created by Digital Currency Group-owned crypto news site, Coindesk, currently includes 28 cryptocurrency coins.
Which of these catalysts will affect Bitcoin more? Watch out for Bitcoin price movements in the coming days.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decisions based solely on what you read here.