BTC/USD Price Analysis – March 21, 2023

Daily Price Outlook

The BTC/USD pair is currently trading at $27,908, reflecting a 2.37% increase over the last 24 hours. The weekend witnessed a surge in Bitcoin prices, with the cryptocurrency briefly touching $28,000, a level is last seen nine months ago. However, the prices fell back before the US Federal Reserve made its decision on interest rates.

Global Banks are in Chaos

The global banking sector faced additional pressure on Sunday when it was announced that Swiss banking giant UBS would acquire its financially troubled rival Credit Suisse in a $3.2 billion deal.

The Swiss government arranged the acquisition as part of ongoing efforts to control a crisis that threatens the banking industry worldwide.

Meanwhile, major central banks, including the Federal Reserve, the Bank of England, and the European Central Bank, announced coordinated action on Sunday to boost liquidity in their existing US dollar swap deals.

The goal was to make it easier to obtain US dollar liquidity during times of crisis. However, several banking stocks plummeted in response.

In stark contrast, Bitcoin has continued to perform well, with its price increasing significantly following the collapse of several major banks earlier this month.

As a result of the banking turmoil, Bitcoin has been touted by enthusiasts as a safe-haven and digital gold. The BTC/USD has reached a nine-month high as investors consider concerns over the banking industry.

Investors Eye Fed Interest Rate Decision

Ahead of the US Federal Reserve's interest rate decision, investors were cautious, causing a loss of momentum for Bitcoin. Now that the Fed has announced a rate hike on Wednesday, investors are refocusing on inflation.

According to CME Group experts, there is a 73.8% probability that the Fed will increase interest rates by 25 basis points, while the probability of the Fed keeping rates steady due to concerns about bank viability is 26.2%.

The speculation of a rate hike by the Fed has also led to a rise in the US dollar. The US Dollar Index increased by 0.14% to 103.40, which has limited BTC/USD's growth.

Bitcoin Price Chart - Source: Tradingview

BTC/USD Intraday Technical Levels

Support     Resistance

27082          28390

26452          29068

25774          29698

Pivot Point: 27760

BTC/USD – Technical Outlook

Bitcoin's support remained above the $26,000 zone as the cryptocurrency attempted to break over the $28,000 and $28,400 barriers. The bears, though, didn't give up near $28,500, and the day's high was about $28,590. There has been a modest drop below the $28,000 barrier as the cryptocurrency consolidates its recent gains.

Bitcoin could have a correction to the downside if the $28,500 resistance level isn't breached, with first support in the $27,700 area and the trend line. The 100 hourly simple moving average and the trend line at $27,200 are the next key support levels.

The 50% Fibonacci retracement level of the up wave, from the $23,912 swing low to the $28,590 high, is at $26,250, which could be reached if losses continue. The $25,700 level represents the next major support level.

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