Technical Analysis

BTC/USD Price Analysis – March 14, 2023

By LonghornFX Technical Analysis
Mar 14, 20233 min

Daily Price Outlook

On Tuesday, March 14th, BTC/USD opened at $24,187. It reached a high of $24,356 and a low of $24,074 before trading at $24,338. BTC/USD has gained over 20% in the past few days.

Market Hopeful for Dovish Stance from Fed

Recently, concerns about the financial stability of Silicon Valley Bank led to withdrawal and transfer limitations for its account holders, including several crypto firms. However, on Monday, the bank's account holders were granted full access to their funds following the government's assurance of protecting all depositors.

In addition, the failure of Signature Bank, the primary banking partner of Circle, a peer-to-peer payments tech firm, has exposed the stablecoin ecosystem's dependence on certain centralized entities.

After regulators intervened to support deposits at Silicon Valley Bank (SVB) and Signature Bank (SBNY), investors felt relieved and grew optimistic that the banking sector's meltdown would lead the Federal Reserve to scale back its hawkish monetary policy.

This led to a fall in the US dollar as traders questioned whether the Fed would raise rates again later this month, given the ongoing US banking crisis.

As a result, the DXY is now trading down at 103.63. The risk sentiment of BTC traders returned, causing BTC/USD to soar above $24,000 for the first time in more than two weeks.

Binance Converts Cash Reserves into Cryptocurrencies to Boost Bitcoin, Ether, and Binance Coin Tokens

The world's largest cryptocurrency exchange, Binance, recently announced its plan to convert a $1 billion industry fund into Bitcoin, Ether, and Binance Coin tokens. This move helped boost the value of these cryptocurrencies.

According to Binance's founder and CEO, Changpeng Zhao, the conversion from the industry fund to BUSD took only five seconds and cost $1.29. This announcement followed the US government's commitment to protecting depositors of two struggling regional banks, Silvergate, and Silicon Valley Bank.

Overall, Binance's decision to convert its fund into cryptocurrencies demonstrates growing confidence in the crypto market and highlights the potential for digital assets to become more mainstream.

The failure of Silvergate and Silicon Valley banks has caused significant concerns in the crypto market, limiting their ability to trade freely and causing panicked token sales. However, the fear eased after the Federal Reserve announced on Sunday that it would guarantee all deposits, not just those federally insured.

Furthermore, Binance's move to convert a $1 billion fund into Bitcoin, Ether, and Binance Coin tokens created a significant boost in buying pressure, leading to an increase in BTC/USD. The news that Bitcoin rose due to Binance's announcement and a sense of relief in avoiding another crypto disaster contributed to the rise.

 Bitcoin Price Chart - Source: Tradingview

BTC/USD Intraday Technical Levels

Support     Resistance

22532         25201

20877         26215

19863         27870

Pivot Point:23546

BTC/USD – Technical Outlook

Bitcoin's value has rocketed since last Friday, with the largest cryptocurrency by market size recovering by about 30% from its lows on Friday. As a result of the upswing, the price has broken the 2023 record by going above $26,000.

During a crisis in the financial industry and massive bank runs, Bitcoin's value increased. BTCUSD jumped past $25,000 and then passed the $26,000 level after today's CPI data was released, which came in at 6%. From Bitcoin's initial fall below $26,000 in June 2022, the cryptocurrency has struggled to rise above that mark.

Following a potentially different reaction at a retest of the downtrend resistance line, things may be different this time around. After retesting $20,000 late last week, BTCUSD had a tremendous increase, with the price per coin climbing by more than 25%.



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