© Reuters
Investing.com – After putting pressure on the $22,000 level with several tests during the day on Wednesday, the finally broke this support in the evening, pulling back to a low of $21,622.
Currently at $21,725, the is down 2% over 24 hours and almost 8% over a week.
Silvergate continues to weigh on Bitcoin as bankruptcy looms
After being affected Tuesday by Powell’s hawkish speech before the US Congress, Bitcoin and the cryptocurrency market in general were penalized on Wednesday by a new twist in the Silvergate file, a crypto bank which is at risk of bankruptcy, and whose revelation difficulties caused a BTC flash crash last week.
Yesterday the shares of Silvergate Capital Corp (NYSE:) plunged about 30% post-market after the company said it would cease operations and voluntarily liquidate the bank.
“In light of recent industry and regulatory developments, Silvergate believes that an orderly reduction of the bank’s operations and voluntary liquidation of the bank is the best course of action,” the company said in a statement. .
This news follows Tuesday night’s announcement that representatives from the Federal Deposit Insurance Corp. (FDIC) to the company’s headquarters in La Jolla, California to discuss emergency arrangements.
In summary, another resounding bankruptcy is looming in the cryptocurrency industry, which weighed heavily on the morale of Bitcoin traders last night.
Investors will therefore continue to monitor the Silvergate dossier on Thursday, especially since from a macro point of view, few potentially influential events are expected today.
Can Friday’s NFP report influence BTC?
This will be less the case on Friday, when the NFP report on US job creation for February will be published. However, given that the market is now pricing in a more than 77% chance that the Fed will revert to a more aggressive 0.5% rate hike at the end of the month, there is little chance that a strong NFP report pushes this probability even further, and therefore weighs on Bitcoin.
Moreover, the ADP (EPA:) report published yesterday, which largely exceeded expectations at 242k job creation against 200k expected, did not affect the BTC/USD.
Conversely, poor jobs numbers could easily push back rate hike expectations, in what could be called a “correction” after a very rapid rally following Powell’s speech on Tuesday.
Technical thresholds to monitor to trade Bitcoin well
Finally, regarding the important thresholds to watch on Bitcoin in the short term, the zone of $21,400-21,600 is an immediate support, before the psychological threshold of $21,000. Lower, the key threshold of $20,000 could be directly targeted.
On the upside, $22,000 is now the first potential resistance, ahead of the $23,000 area, above which Bitcoin’s daily pattern will turn more positive again.