Bitcoin (BTC) diced with $28,000 at the March 24 Wall Street open as fresh banking woes failed to provide a further boost to crypto.
Traders stay optimistic on BTC’s long-term trend
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD losing momentum to hit daily lows of $28,001 on Binance.
The pair were attempting to cement support after a classic comeback on March 23 erased panic on the back of the latest United States economic policy moves.
The Federal Reserve hiked baseline interest rates by 0.25% on March 23, which along with mixed comments from Chair Jerome Powell, served to unsettle risk assets amid a lack of clear trajectory.
Related: Fed balance sheet adds $393B in two weeks — Will this send Bitcoin price to $40K?
Bitcoin thus showed indecision on March 24, with analysts equally split over where BTC price action could head next.
“Typical seeing some panic on that dip, but unless we start to see a shift in market structure, Lower lows and lower highs, then we have nothing to worry about from a bullish perspective,” an optimistic Crypto Tony told Twitter followers.
Popular trader and analyst Rekt Capital was similarly upbeat about overall strength on BTC/USD.
“All BTC needs to do to confirm a new macro uptrend is Monthly Candle Close above ~$25000,” he argued in part of his latest analysis.
“So far, so good.”
Fellow trader Credible Crypto meanwhile suggested that even if BTC/USD were to drop to $23,000, this would not imply a clean break with current bullish behavior.
“A few weeks of chop before we continue our rally would be good for us here. Anything down to 22-23k is fair game and nothing to be concerned about imo,” he wrote on March 23.
Deutsche Bank unnerves market post-Credit Suisse
Short-term sentiment was impacted by a temporary trading outage on the largest global exchange, Binance, which briefly suspended spot trading.
Related: Crypto winter can take a toll on hodlers’ mental health
On-chain monitoring resource Material Indicators noted that bid liquidity had appeared on the Bitcoin order book in order to prevent a sell-off.
After an extended outage @Binance is back online, and someone put up a $13M block of bid liquidity to try to slow down a selloff. I wonder who that could be. pic.twitter.com/o195XMo4Zt— Material Indicators (@MI_Algos) March 24, 2023
Elsewhere, macro concerns resulting from the U.S. banking crisis increased on March 24 as Deutsche Bank lost value just days after Swiss lender Credit Suisse saw a takeover and government bailout.
OUCH! Deutsche Bank's credit default swaps, which represent insurance of its bondholders against a potential default, spike as banking doom is back in Europe. Markets price 31% default probability for DB sub-bonds and 16% for senior DB paper. pic.twitter.com/APrSRh9yVb— Holger Zschaepitz (@Schuldensuehner) March 24, 2023
“Bank stocks dumping, Yields Dumping. Precious Metals up. Bitcoin a bit flat,” analyst Daan Crypto Trades responded.
“Seems like the TradFi world is continuing the same trend as last week. Let’s see if BTC has more fuel left in it or not.”
At the time of writing, Deutsche Bank shares were down nearly 10% on March 24.
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