Bitcoin (BTC) hit its highest since the start of the month on March 13 as U.S. bank stocks saw the largest mass halt in history.
BTC price sees “phenomenal” rebound
The move was eagerly anticipated by market participants, many of whom had warned of extreme volatility at the Wall Street open.
This came true, with Bitcoin and altcoins benefiting from intense uncertainty surrounding bank stocks, in particular, as trading got underway.
The fallout from the failure of two more U.S. banks over the weekend was keenly felt, not just at home but in Europe, where banks also saw heavy losses.
“Massive move of Bitcoin. Now facing next resistance zone (I couldn’t get $21.6K),” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, reacted.
“Trend is back up, buying the dip on S/R flips seems the game. Resistance around $23.3-23.6K, if it stalls and consolidates -> altcoins should continue.”
Trader and analyst Rekt Capital, who previously argued that the monthly candle needed to close to confirm a longer-term trend break, called Bitcoin’s dip below $20,000 the week prior a “bear trap.”
“The way BTC has recovered within such a short space of time just shows that the drop to ~$20000 was a Bear Trap,” he wrote in one of many tweets as BTC/USD hit $23,500.
Rekt Capital called the uptick “phenomenal” in further analysis, with 18% added versus the local lows from March 10.
“If $22.4k holds as the new floor, that’s all and a bit more that price needs to gain momentum to the Main Resistance in the $24.1k-$25k range and truly break through,” trader Gaah continued.
“We could have more price explosions, watch out in that region.”
Gaah shared a liquidity chart from Caue Oliveira, head of research and on-chain analysis at Brazilian crypto insights firm BlockTrends:
Bank stocks halted as contagion spreads to Europe
Outside crypto, the picture was slowly improving for U.S. stocks — with the exception of some banks.
Some of the worst performers of the day included First Republic Bank, which lost 76% to see trading halted soon after the opening bell.
Overall, as entrepreneur Brian Roemmele noted, more U.S. bank stocks were halted than ever before in history.
In addition to rethinking the likelihood of U.S. Federal Reserve interest rate hikes continuing on March 22, markets meanwhile were also reducing expectations that the European Central Bank would hike by 0.5% this week.
Among European losses on the day was the already-embattled Credit Suisse, which was down over 7% to new all-time lows at the time of writing.
“The problem for Credit Suisse (and others like it) is that it cannot cover deposit flight by borrowing in money markets. It can only go to the Swiss National Bank, in effect for a second bail out. Will the SNB play ball?” Alasdair Macleod, head of research for Goldmoney, queried.
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