Daily Price Outlook
The BTC/USD pair is trading at 28,485, up 4.00% in 24 hours. The stock price of First Republic Bank dropped by 50% as bankruptcy rumors gained attention; nevertheless, the price of Bitcoin increased.
First Republic Bank Share Price Plummets
On Monday, First Republic disclosed results that revealed the unstable bank's survival since mid-March. It is because of the failures of Silicon Valley Bank and Signature Bank. The bank reported that its customers withdrew $102 billion in deposits in the first quarter, much more than the $176 billion it had at year's end.
Following news that clients had withdrawn more than $100 billion in deposits during the first quarter, the bank's shares dropped by around 50% on Tuesday. Therefore, it gave rise to rumors that it may soon become the third big bank to fail this year as panic spreads throughout the United States and globally.
The news has received mixed reactions on the US stock market. However, BTC/USD increased as the First Republic Bank deposit collapse fueled new worries about a financial crisis in the United States.
Standard Chartered Can See $100K in 2024
According to a study report issued on Monday by Standard Chartered Bank, the world's largest cryptocurrency, Bitcoin, has the potential to reach $100,000 by 2024.
The bank's research suggests that the rise above $100,000 could be the result of several reasons. The current banking-sector crisis may have contributed to re-establishing Bitcoin's use as a decentralized scarce digital asset. The research also found that as the Federal Reserve approaches the end of its tightening cycle, the macroeconomic backdrop for risky assets continues to improve and serve as one of the price drivers.
Not just Standard Chartered anticipates a significant increase in the price of Bitcoin. During a blockchain conference in Paris last month, several cryptocurrency industry insiders predicted that Bitcoin would reach a new all-time high in 2023. An official at the US-based cryptocurrency exchange Gemini claimed that $100,000 would be possible.
Daily Technical Levels
Pivot Point: 27979
BTC/USD – Technical Outlook
The Bitcoin price prediction has become optimistic as it broke out of the sideways trading range between 27,200 and 27,800 levels. The BTC price successfully surpassed the choppy trading range on the upside and created a bullish engulfing pattern in the four-hourly time frame, indicating a probable continuation of the upward trend.
Based on the technical analysis, immediate support for Bitcoin is likely to be found around the 28,200 level. In case the price falls below this level, the BTC price may dip to the 27,800 level. Nevertheless, the overall trend remains bullish, which increases the probability of BTC reaching the next target level of 28,800.
On the other hand, if the BTC price surpasses the 28,790 level, it may head toward the 29,350 level, which represents the 50-day moving average.
The fact that Bitcoin has already crossed above this level suggests a strong possibility of a bullish trend continuation. Therefore, the recommended strategy is to consider a buying position above the 28,200 level, aiming for a target of 28,700 or 29,350. In the meantime, it is advisable to set a stop loss around or below the 28,000 level.
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