Technical Analysis

BTC/USD Price Analysis – March 06, 2023

By LonghornFX Technical Analysis
Mar 6, 20233 min

Daily Price Outlook

The BTC/USD is trading at $22,344, a 0.49% decrease over the past 24 hours. Last week, Silvergate made headlines for delaying its annual 10-K financial report submission, which raised concerns about potential bankruptcy. A potential failure of the cryptocurrency bank could have negative repercussions for the rest of the sector.

Silvergate announced on March 3rd that it had made a "risk-based decision" to halt its cryptocurrency payments network, the Silvergate Exchange Network (SEN), just two days after the digital asset-focused bank expressed doubts about its viability. However, all other deposit-related services are still functioning normally.

Most of Silvergate's cryptocurrency customers, including Coinbase, Paxos, Galaxy Digital, and, immediately cut ties with the bank during the turmoil.

Following Silvergate's liquidity issues and other cryptocurrency-related problems, the market leader in cryptocurrencies, BTC/USD, experienced a sharp decline.

Upcoming Interest Rate Hikes by the US Federal Reserve

The US Federal Reserve's semi-annual Monetary Policy Report, which was released last Friday, stated that the Fed funds rate target must continue to rise in order to get inflation back to 2%. However, despite the report, the US Dollar Index (DXY) is now trading lower at 104.48.

Investors are eagerly anticipating the US employment figures for February, which will be released on Friday, and Jerome Powell's speech before Congress on Tuesday, for any hints on the future path of interest rates.

Market players will pay close attention to Powell's remarks to determine whether he intends to raise rates this month, following recent strong inflation figures. Traders are now expecting the Fed to raise interest rates by 25 basis points this month.

In addition, when interest rates increase, crypto values tend to decline due to the spillover effect. As a result, concerns over more rate hikes are putting pressure on BTC/USD.

Santiment Spots Strangely Negative Sentiment in the Cryptocurrency Market

The market intelligence platform Santiment has been analyzing social analytics and on-chain data to provide insights into the cryptocurrency market. According to a tweet by Santiment on March 5, there has been a continuously strong negative sentiment against cryptocurrencies. It is difficult to pinpoint the primary cause of one of the highest levels of fear, uncertainty, and doubt (FUD) ever seen by Santiment.

Santiment's social research indicates that most of the negative sentiment surrounding the cryptocurrency industry came from Twitter. The amount of unexpectedly aggressively negative tweets on the cryptocurrency market is unusually high. The hashtag #cryptocrash was also a popular off-and-on trending hashtag on the network before the decline in BTC/USD.

 Bitcoin Price Chart - Source: Tradingview

Bitcoin Price Chart - Source: Tradingview

BTC/USD Intraday Technical Levels

Support     Resistance

22221          22646

22010          22860

21796          23071

Pivot Point: 22435

BTC/USD – Technical Outlook

At the moment, Bitcoin is being traded at $22,360 with a trading volume of $12.8 billion over the past 24 hours, marking a decrease of 0.50%. Bitcoin is currently ranked at the top of the CoinMarketCap rankings with a live market cap of $431 billion.

Technical analysis suggests that there is a possibility of the BTC/USD pair breaching the symmetrical triangle pattern at the $23,250 level, which may expose the BTC price to the $22,046 support zone. If BTC breaks down further below this support zone, it could drop to $21,450.

A bearish engulfing candlestick pattern indicates a significant selling bias in the BTC/USD pair. However, if the candles manage to close above this level, there is potential for a bullish bounce-off towards the $22,800 mark or even higher, with a possible target of $23,750.



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