The cryptocurrency markets began the week on an optimistic note, with most of the altcoins trading above their 200-day simple moving average threshold. This level is crucially monitored by long-term investors to identify whether a particular asset is in either a bullish or bearish cycle.
In an effort to safeguard the American economy, the Federal Reserve took decisive measures and ordered Signature Bank to close its doors on March 12. This action followed swiftly in wake of Silicon Valley Bank’s closure only two days prior due to a threat of systemic risk.
Just a week before, Silvergate Bank – another bank that embraced the cryptocurrency industry – declared it would be shutting down and ceasing operations on March 8th.
Two of these financial institutions were viewed as a reliable cornerstone for the crypto industry. According to insurance documents, Signature Bank had an impressive $88.6 billion in deposits on December 31st last year.
Overall Market Analysis
Bitcoin price is up today as the initial shock of the SVB crisis gives way to a BTC price recovery above $20,000 and is up by over 8%, while ETH has surged by over 6.87% over the same time in the past 24 hours.
Looking at the technical analysis for BTC on the 4-hour timeframe, BTC has been bullish above $22,000 and is currently trading at $22,025.63.Bitcoin is up by over 7%, as most of the technical indicators are indicating bullish momentum.
The Relative Strength Index (RSI) is currently overbought, which suggests that the crypto asset may see a correction soon. The MACD also supports this sentiment, as we can see it is about to cross into bearish territory.
At the same time, Ethereum has been rising steadily and is trading at a high of $1830.87, up by 6.87% in the past 24 hours. ETH is currently trading above its 200-day SMA and is expected to continue higher as buyers remain in control.
The RSI indicator is currently neutral, while the MACD shows bullish momentum, which suggests that Ethereum could move higher in the coming days. However, In the hourly timeframe, the bullish momentum has started to cool off, with bearish hourly candles forming.
The gains across both BTC and ETH indicate that investors are not only bullish on Bitcoin but also other major cryptocurrencies like Ethereum. The altcoin market has performed exceptionally well this week, with Conflux CFX leading the pack with a stellar 28% increase in price. XRP is up by 14%, ADA by 8.15%, and Synthetix by 28.76% in the past 24 hours alone.
Overall, the cryptocurrency markets are yet to come out unscathed from the two major crypto-friendly banks closing down this week. Despite this, Bitcoin and Ethereum continue to lead other cryptocurrencies by gaining massively. Technical signals indicate that both of these coins could potentially hit new all-time highs in the near future.
