Bitcoin, the world’s largest cryptocurrency, is facing yet another hurdle in its quest for recovery as it struggles to break the $29,000 mark. This comes as investors cash in on the highly anticipated Arbitrum airdrop, which has sparked a frenzy in the cryptocurrency market.
In addition to that, Credit Suisse, the 8th largest bank in the world has been facing problems with repaying its debts – prompting rumors of its collapse to spread across the investing community.
Let’s dive in.
Previous Bitcoin Analysis
Last week, Bitcoin went back over the 200 and 50-day moving averages, securing a safe landing. To confirm a breakout, Bitcoin needed to close the daily candle above the blue range.
If it broke out, the next resistance would be at $28,302 and then $32000. At that time, the bears had been decimated. However, as seen in previous analyses, the market was heavily manipulated.
The beginning of this week saw continued tension in the markets, as investors looked forward to the FOMC meeting on March 22. On D-Day, Jerome Powell, chairman of the Federal Reserve increased the interest rates by 25bps.
This was expected by the markets, and hence, Bitcoin was not impacted by the news.
Bitcoin Next Week
The fall of the first three banks in the United States prompted people to rush into Bitcoin, pushing Bitcoin well above the consolidation zone. As predicted last week, Bitcoin reached $28,000 and found resistance there.
From here, Bitcoin can retrace back to the upper trend line of the rising wedge (~$27,000) or back to the top of the range (~$25,200). If we break above $28k, Bitcoin will rise to $33,000, which so happens to be the next resistance.
After the fall of Silvergate, Silicon Valley, and Signature banks, Credit Suisse is now in the limelight. The bank’s Credit Default Swaps rose to an all-time high after one of the largest backers from Saudi Arabia said it would no longer be guaranteeing Credit Suisse’s debts.
After this blow, Credit Suisse’s stock crashed to even lower lows.
UBS, a global firm providing financial services in over 50 countries, agreed to buy Credit Suisse for $3.2 billion. If the deal goes through, Credit Suisse shareholders will be wiped out, selling their shares for just 0.76 CHF per share.
The next significant date on the calendar for all financial markets is March 28-31, 2023, which are the possible dates for the XRP Case final ruling.
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.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.