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BTCUSD Market Update

3/6/2023 2:10 PM

Last week, the BTC/USD pair corrected down to the area of 22000.00, but is currently trying to partially restore the lost positions and is trading at 22400.00.

According to most experts, the pressure on the digital assets sector was exerted by reports of the probable bankruptcy of Silvergate Bank, which actively worked with cryptocurrency firms. Last Friday, representatives of the main company Silvergate Capital Corp. announced the delay in the publication of the annual financial report for the U.S. Securities and Exchange Commission (SEC). It was also stated that the reasons for extending the audit were, in particular, accounting for losses on bonds issued at the beginning of this year. These statements aroused suspicions in the cryptocurrency community that due to a number of negative events in the market, Silvergate's capitalization could have suffered greatly, and the bank is now financially insolvent. Against this background, many digital companies hastened to distance themselves from Silvergate, stating a minimal degree of cooperation or even a break in relations. This was done, for example, by Coinbase, Paxos, Galaxy Digital, Bitstamp, Bakkt, Gemini, Tether and a number of other companies.

New financial problems of a large company associated with the cryptocurrency sector increase investors' distrust of the industry and cause a decline in prices. In addition, monetary factors may exert additional pressure on the market this week. Thus, the head of the US Fed Jerome Powell will address Congress with a semi-annual report on the activities of the regulator, and February employment data will also be published. In the event that they turn out to be strong again, officials get another argument in favor of extending the cycle of interest rate increases.    

Technically, the price is trying to resume serious growth, but for this the quotes will need to break above the resistance zone of 23000.00-23500.00 (Fibo retracement 23.6%, the middle line of the Bollinger Bands, the Murray level [7/8]). In this case, the growth targets will be 25000.00 (Murray level [8/8]) and 26562.50 (Murray level [+1/8]). The key for the "bears" is the level of 21875.00 (Murray level [6/8]), with its breakdown, the decline will continue to the level of 20312.50 (the Murray level [5/8]).

Technical indicators do not give a single signal: the Bollinger Bands are horizontal, the MACD histogram has moved into the negative zone, but the Stochastic reverses upwards at the oversold zone.

Resistance levels: 23500.00, 25000.00, 26562.50. | Support levels: 21875.00, 20312.50.

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