© Reuters
Investing.com – Things took a sharp and wide turn for the worse on Friday, with the major cryptocurrency posting a flash crash of 6% overnight from Thursday to Fridayto finally stabilize during the day on Friday.
The , which fell as low as $22,000, is trading at $22,380 at the time of writing, down 4.4% over 24 hours and down 3.36% over one week.
Why Bitcoin fell on Friday?
For once, the fall in Bitcoin and the cryptocurrency market in general on Friday was not related to general market sentiment or macro data, but to news specific to the cryptocurrency world.
In effect, US crypto bank Silvergate could go bankrupt. Its stock crashed 58% on Thursday, and several partners, including Coinbase (NASDAQ:), distanced themselves. This came after Silvergate announced it would need more time before it could file its annual report with the SEC, the US financial regulator.
All this raises fears of another bankruptcy in the crypto industry, while the FTX affair is still very present in the minds and in the headlines of the financial press.
An article from the famous Wall Street Journal also weighed on the morale of crypto traders on Friday, alleging that intermediaries of , the issuer of the largest stablecoin in the world (USDT) had resorted to false invoices and other counterfeit documentswhich Tether immediately refuted.
Note that this negative crypto news has led to a very clear decorrelation of the crypto market with that of equities. Indeed, the stock markets had a solid weekend, with a gain of almost 2% for the .
Towards a new fall in Bitcoin this weekend?
Although the fall of BTC/USD on Friday gave rise to bearish signals, the reversal of the cryptocurrency is not yet confirmed.
As seen on the daily chart below, Bitcoin broke below the trendline visible since the beginning of the year, as well as below its 50-day moving average.
However, it is now possible to draw a new, less strongly bullish trend line from the January 18 low. A break below $22,000 would equate to a break of this line, and push the backdrop towards a bearish reversal.
In this case, $21,500 and $21,000 will be the first potential targets. On the upside, the 50-day MA at $22,913 and the $23,000 threshold form the first major resistance zone, ahead of 24,000/$24,250, then 25,000/$25,250, the area of this year’s highs.