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(Kitco News) – Conditions improved across all financial markets on Thursday as banks from around the world banded together to aid industry partners, with the Swiss National Bank stepping forward to help out the struggling Credit Suisse while multiple large U.S. banks joined forces to lend First Republic $30 billion.
Stocks trended higher as concerns about a banking collapse diminished, with the S&P, Dow and Nasdaq all finishing the trading day the green, up 1.76%, 1.17%, and 2.48%, respectively.
Data provided by TradingView shows that after hitting a low of $24,180 during the opening candle on Thursday, Bitcoin (BTC) bulls steadily pushed its price higher throughout the day, successfully rising above the $25,000 support level in the late afternoon before BTC price pulled back to $24,850.
BTC/USD 4-hour chart. Source: TradingView
The improving market conditions have pushed April Bitcoin futures prices higher, according to Kitco senior technical analyst Jim Wyckoff, who noted that “Prices hit a contract high on Tuesday.”
“Bulls have the solid near-term technical advantage as a fledgling price uptrend is in place on the daily bar chart,” Wyckoff said, and “The path of least resistance for prices is sideways to higher.”
Three scenarios
According to experienced cryptocurrency trader Crypto Chase, there are three possible scenarios moving forward for Bitcoin, with the $23,500 price level being the key level to focus on.
In the first scenario, which is the bull’s preferred option, BTC price could dip to $23,500, which would be quickly bought up by anxious dip buyers, followed by a rapid bounce back to $25,000. “I could see price going even higher with a response like this,” Crypto Chase said.
Based on the current price action in the market, it’s looking like this scenario might play out.
BTC/USD 4-hour chart. Source: Crypto Chase
In the second scenario, BTC would have “an anemic bounce,” which would lead to a lower level of confidence and support the idea of taking some profits on any long positions while making sure to leave some exposure in the case of a bounce higher. “If the other half gets stopped out, the partial TP’s make up for it, and the total exit is breakeven,” Chase wrote.
The third scenario revolves around a “clean break below 23.2K-23.5K [that] puts the initially anxious buyers underwater [as] they look to exit on upon any retest or backfill, causing sell pressure,” said Chase. “As it breaks down, this is where people begin “buying the dip” repeatedly, but the local uptrend is most likely cooked. Show me initial strength or I’m no longer interested in longs for a bit.”
As it stands now, market participants are glued to their trading screens waiting for some indication of which way things will head moving forward.
Market analyst Rekt Capital continues to highlight that BTC is sitting at the monthly macro downtrend, and has suggested that “A breakout past the BTC Macro Downtrend would confirm a new Bull Market and in turn confirm that November 2022 was the bottom.”
#BTC is right back at the Macro Downtrend resistance$BTC #Crypto #Bitcoin pic.twitter.com/T7GiQL8Hul
— Rekt Capital (@rektcapital) March 16, 2023
Altcoins trend higher
It was an overall positive day for the altcoin market as roughly 85% of the tokens in the top 200 were in the green.
Daily cryptocurrency market performance. Source: Coin360
The performers on the day were Biconomy (BICO), Synapse (SYN) and UMA (UMA), which put on gains of 14.29%, 12.14% and 12.11%, respectively.
The overall cryptocurrency market cap now stands at $1.09 trillion, and Bitcoin’s dominance rate is 44.4%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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