Analysts note that bitcoin is at a standstill, but apparently determined to submit to bearish pressure. What are the facts that will arouse the attention of the market.
The market of cryptocurrencies shows no signs of improvement. This Monday, March 6, Bitcoin is trading almost unchanged and is around US$22,400 while Ethereum loses 0.4% to US$1,560. In the rest of the market, setbacks of up to 2%.
Analysts point out that bitcoin is at an impasse, but apparently determined to submit to the bearish pressure. “From a technical point of view, we remain within the $21,000-25,000 range that we have been holding for several weeks. Besides, The importance of the $25,000 area is huge and we would not open long positions until that area is surpassed.”explained Javier Molina, an eToro analyst in Bolsamanía, who stressed that losing the US$21,000 would lose the recovery trend that has been observed since the beginning of the year.
The truth is that the price of cryptos were hit by numerous negative headlines in the last month and for a few unflattering macroeconomic data for the US economy.
Why did the Silvergate scandal affect cryptocurrencies?
The crash of the crypto bank Silvergate wiped out the optimism in the market. The delay in publishing its results and the role of FTX’s bankruptcy as well as its partner status with Binance worried investors.
“It does not appear that the Silvergate issue is causing widespread contagion. And we may have already seen most of the drop associated with that news.Matt Weller, global head of research at Forex.com, said in an interview with CoinDesk on Friday. Despite his moderate optimism, this expert acknowledges that he is not You’d be surprised to see bitcoin “go back to $20,000, or even $18,000”. “But it seems the depths of winter are behind us.”
Key week for the markets
On the other hand, the appearance of Jerome Powell, President of the Federal Reserve (Fed), before the Senate this Tuesday will also be a focus of attention for the market. The experts emphasize that he will reiterate that the Fed is still not done with its fight against inflationthat the labor market remains particularly strong and that a soft landing is possible, although they also stress that the central bank “will not hesitate to sacrifice growth to end inflation.”
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