During the previous week it was indeed hard being an investor or trading on financial markets. It was a sort of a game of nerves. The week started with the FED Chair Powell`s testimony in front of the US Congress, expressing views on the possibility for interest rates to go higher from previously expected in case that inflation continues to be persistent. The second half of the week was marked by news regarding Silvergate bank which officially noted that the bank is winding down its further operations. Soon after, another shocking news hit the markets in terms of collapse of VC-friendly Silicon Valley Bank. Market reaction was immediate where both US and EU markets were closed in red, while the crypto market had its worst week since the collapse of the FTX exchanger.
Previous week BTC started around $22.5K level, however, due to negative fundamentals on the market, during the whole week selling orders were dominant. Lowest level reached during the week`s sell-off was $19.6K, when the coin finally reverted a bit to the upside. During the strong downtrend, RSI reached a clear oversold side, indicating that short reversal could be ahead in the coming period. Moving average of 50 days halted its divergence from its MA200 counterpart, putting in question the Golden cross, which occurred a few weeks ago.
It could be expected that markets would continue to be under the influence of negative news related to the collapse of the Silicon Valley bank also during the week ahead. BTC clearly reached the oversold side, which is adding to the probability of a short term reversal. In this sense, $22K might be the next target of the BTC in the coming period. Whether there will be a market strength for BTC price to reach $23K as a short term stop on a road to $25K, would depend exclusively on a potential further negative news related to Silicon Valley Bank or eventually its contingencies. In such a case, the price of BTC might move even lower, at least to the level of $18.5K. Anyway, in the week ahead precaution is advisable. It might be a good time for a long position in BTC, but with too high risks.
Previous week BTC started around $22.5K level, however, due to negative fundamentals on the market, during the whole week selling orders were dominant. Lowest level reached during the week`s sell-off was $19.6K, when the coin finally reverted a bit to the upside. During the strong downtrend, RSI reached a clear oversold side, indicating that short reversal could be ahead in the coming period. Moving average of 50 days halted its divergence from its MA200 counterpart, putting in question the Golden cross, which occurred a few weeks ago.
It could be expected that markets would continue to be under the influence of negative news related to the collapse of the Silicon Valley bank also during the week ahead. BTC clearly reached the oversold side, which is adding to the probability of a short term reversal. In this sense, $22K might be the next target of the BTC in the coming period. Whether there will be a market strength for BTC price to reach $23K as a short term stop on a road to $25K, would depend exclusively on a potential further negative news related to Silicon Valley Bank or eventually its contingencies. In such a case, the price of BTC might move even lower, at least to the level of $18.5K. Anyway, in the week ahead precaution is advisable. It might be a good time for a long position in BTC, but with too high risks.
