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(Kitco News) – Crypto prices took a beating in trading on Friday, with investors beginning to worry that Silvergate Bank, a former banking partner of many of the major crypto players, may be “undercapitalized”. This could be the next major blow to the crypto ecosystem.
Traditional stock markets, on the other hand, saw a surge in prices as the 10-year bond yield decreased. Also, the latest figures on services showed that economic activity rose in February. The S&P, Dow, and Nasdaq all finished off the week higher, with gains of 1.61%, 1.177%, and 1.97%, respectively.
Data from TradingView reveals that Bitcoin (BTC) bulls were attacked by bears in the early morning hours of Friday, driving the top crypto to a daily low of $22,252 and keeping the pressure on during the afternoon, keeping BTC below $22,500.
BTC/USD 4-hour chart. SourceTradingView
The morning selloff in March Bitcoin futures resulted in a three-week low in early US trading, according to Kitco Technical senior analyst Jim Wyckoff. He noted that the bulls have lost their slight edge in the near-term as the uptrend in the daily chart has been reversed. “Prices are now in a fledgling downtrend and bears have some momentum,” Wyckoff cautioned.
Crypto Market Psychology
Market analysts have identified key price levels that the bears are keeping an eye on. Crypto Tony posted the following tweet, highlighting the $22,300 support/resistance level, something to watch out for.
The bears’ key level for this weekend is $22,300. That has been flipped from support to resistance, and the bears need to flip it back to get the bullish momentum going again. pic.twitter.com/NYW8JmcIxM
– Crypto Tony (@Crypto_Tony) March 5, 2021
The crypto market is not having a great day, as several cryptocurrencies have experienced double-digit losses. Bitcoin, which is the largest cryptocurrency by market capitalization, has dropped below the $22,400 support level. Crypto Tony, a crypto investor, believes that the current dip could be a potential opportunity for a bounce.
Meanwhile, Pentoshi, another crypto investor, has shared a chart which suggests that there is hope for a recovery. Finally, Michaël van de Poppe, the founder of Eight Global, has shared his insights on why trading in crypto markets can be difficult.
Altcoins were hit hard, with SingularityNET, BinaryX, and dYdX taking the biggest hit. The entire crypto market capitalization is now estimated to be $1.024 trillion and Bitcoin’s dominance rate is 42.1%.
It is important to note that these are just opinions and the accuracy of the information cannot be guaranteed. Investors should do their own research and understand the risks before making any investments.