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Investing.com – The has been on a very strong rise over the weekend, mostly during the day on Sunday, so far peaking at $22,640, compared to a low of $19,592 on Friday.
At the time of writing, the is trading at $22,440, up almost 10% over 24 hours.
Fed rescues banks, bitcoin relieved
Regarding the reasons for this sharp recovery of Bitcoin and cryptocurrencies in general, it should be noted that the Federal Reserve surprised by announcing a new program of emergency loans for banks after the collapse, in recent days, Silicon Valley Bank, which was once the 16th largest bank in the United States, and Silvergate Bank, a cryptocurrency-friendly bank.
The Fed’s new emergency lending program will help ensure that banks have the capacity to meet the needs of all their depositors, according to a statement. Under the program, banks and other lenders will be able to pledge Treasury bills and mortgage-backed securities for liquidity, the Fed said.
Meanwhile, U.S. financial officials said on Sunday that Silicon Valley Bank depositors would have access to “all their money” starting Monday, according to a joint statement from the Treasury Department, Federal Reserve and FDIC. Sunday afternoon.
More than $3.3 billion, or 8% of the $40 billion in reserves of the world’s second-largest stablecoin, is held at Silicon Valley Bank, the cryptocurrency’s creator Circle said on Saturday. The USDC, which is believed to trade at unity against the US dollar, rebounded to nearly a dollar on Sunday, after falling as low as 86 cents on Saturday.
Rate expectations also remain a key topic for Bitcoin
It should also be recalled that Bitcoin had already started to rebound on Friday afternoon, following a mixed NFP report which lowered market expectations about the Fed.
Indeed, although job creations exceeded the consensus, wage growth proved to be below expectations, which is good news in the context of the fight against inflation.
Following these figures, the probability of seeing the Fed hike rates by 0.5% at its meeting on March 22 had risen, having almost reached 80% earlier in the week, after the hawiksh testimony of Powell before the US Congress.
Important Technical Thresholds for Bitcoin
From a graphical point of view, it will be recalled that it is the 200-day moving average, currently at $19,715, which stopped Bitcoin’s correction last Friday, as seen in the graph below:
Bitcoin then quickly moved back above the key threshold of $20,000, the 100-day MA at $20,400, and the psychological thresholds of $21,000 and $22,000.
Now, BTC.USD seems to be hesitating against a significant hurdle formed by the resistance of $22,650, the 50-day moving average at $22,915 and the psychological threshold of $23,000. Then $24,000 and then yearly highs a little above $25,000 could be targeted.
If Bitcoin starts falling again from this area, the first important support to consider will be the $21,400 area. Then $20,500, $20,000 and the 200-day MA at $19,715 will be the next potential targets.