The Crypto markets traded mixed the whole week after Federal Reserve Chair Jerome Powell made aggressive comments about the possibility of further rate hikes to fight inflation. Bitcoin, Solana and Polygon traded in red while BNB, XRP and Shiba Inu traded in the green. The global crypto market cap traded down around 996.91 billion, down 0.93% over the past 24 hours. Crypto prices are still highly correlated with the Dow and S&P 500. Following Powell’s speech, major US indices remained lower ahead of the key jobs report on March 10. In addition to the subdued inflation mood, most major banks are still expecting the USA to experience a sharp recession sometime in 2023.
Bitcoin briefly fell below $20,000 for the first time in almost two months following US President Joe Biden’s recent budget and the collapse of “crypto bank” Silvergate. The price of BTC fell to $19,945 on March 10 before recovering to around $20,000, according to data. Bitcoin had a stellar start to 2023 but fell as much as 5% in an hour on March 3 amid uncertainty in Silvergate. Since then, the price didn’t seem to recover. Bitcoin and the rest of the crypto market had a strong start to 2023, with 64% of BTC investors reaching profitability as the BTC price touched $25,300 on Feb. 21. Even struggling bitcoin miners saw massive growth, with revenue soaring 50% to $23 million, signalling a recovery for the struggling industry.
Ether price fell on Dec 16th last year, eradicating the pre-FOMC rally to $1350 after Federal Reserve Chair Jerome Powell made hawkish comments following a 0.50% rate hike. The price of Ether took another hit when Silvergate Capital Corporation decided to voluntarily liquidate Silvergate Bank. The Ether sell-off also triggered a wave of Ethereum long sell-offs that totalled $70 million from March 1st to 8th. The rush of ether-long selloffs comes as Ethereum volume, which could offset selloffs, is down 90% since March 2020. While some analysts believe that Ethereum still possesses several bullish catalysts that warrant investing in the asset, on-chain data paints a bleak picture of its near-term price prospects.
On the macro front, the announcement that Silvergate Bank, one of the top banks in the United States serving crypto businesses, was voluntarily liquidated on March 8 has emerged as a potentially powerful hurdle for the crypto industry. Meanwhile, a March 9th budget supplemental explanatory document revealed that – US crypto miners would eventually be subject to a 30 per cent tax on electricity costs under a Biden budget proposal aimed at “cutting down mining activity.” could. Meanwhile, investor risk appetite is likely to remain subdued, and would-be crypto traders might consider waiting for signs that U.S. inflation has peaked or for the Federal Reserve to indicate it is slowing. They expect fewer rate hikes. A more transparent roadmap for crypto industry regulation would also help boost confidence across the sector.
Technical Outlook
BITCOIN
BTC witnessed a sharp rally and surged almost by 63% from the low of $15,476 to $25,250. The bulls, however, failed to manage the grip on the asset as the price struggled to sustain above the key resistance level of $25,200. On a daily time frame, the asset traded above $25k but failed to give a daily closing above that. Post this move, BTC started to trade in a ‘Rising Channel’ pattern. It tried to take support at the lower trendline of the channel by making a series of small doji-type candles. The asset finally broke the support and witnessed a sharp correction and made a low of $19,776. Currently, BITCOIN is trading just below the psychological level of $20k. If it closes above $20,500 then we can expect some relief rally or else it can further drop to the next support which is at $18,000 to $17,500.
Ethereum
ETH after taking multiple supports at the low of $1,075 showed good signs of recovery and after giving a breakout above the long-held resistance of $1,250 witnessed a sharp rally and made a high of $1,741. The asset faced strong resistance at $1,750 (Horizontal Trendline) and started to trade in a broad range between $1,700 to $1,500. ETH gave a breakout yesterday below the range of $1700-$1500 and made a low of $1,410. The asset has strong support at $1,350 whereas $1,500 will act as a resistance.
BNB
BNB rallied almost by 52% from $220 to $336. Post this move, the asset faced stiff resistance at $335 (Horizontal Trendline) and started moving down. BNB witnessed a sharp correction from the recent highs and the prices plunged almost by 20% and made a low of $271.2. The asset has strong support at $255 whereas $300 will act as a strong resistance.
Weekly Snapshot
| USD ($) | 02 Mar 23 | 09 Mar 23 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $23,475 | $20,363 | -13.26% | $24,103 | $22,861 | $22,614 | $19,818 |
| ETH | $1,647 | $1,439 | -12.67% | $1,672 | $1,567 | $1,584 | $1,380 |
| BNB | $299.95 | $277.30 | -7.55% | $311.80 | $296.57 | $293.64 | $266.14 |
| crypto | 1w – % Vol. Change (Global) |
| Bitcoin (BTC) | -2.87% |
| Ethereum (ETH) | -1.28% |
| Binance Coin (BNB) | 4.74% |
| Resistance 2 | $28,500 | $2,000 | $1.50 | $335 |
|---|---|---|---|---|
| Resistance 1 | $25,500 | $1,750 | $1.30 | $300 |
| USD | BTC | ETH | Matic | BNB |
| Support 1 | $20,500 | $1,450 | $1.05 | $255 |
| Support 2 | $17,500 | $1,200 | $0.75 | $220 |
Market Updates
- Congressman Tom Emmer made the anti-central bank digital currency comments to an audience at the Cato Institute, a libertarian think tank in Washington.
- In the tug-of-war between the United States regulators over control of crypto assets, the Commodity Futures Trading Commission chair has tripled down on his stance that Ether and stablecoins are commodities.
- Hedera, the team behind distributed ledger Hedera Hashgraph, has confirmed a smart contract exploit on the Hedera Mainnet that has led to the theft of several liquidity pool tokens.
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