Daily Price Outlook

The BTC/USD pair is currently trading 3.05% lower at 27,360. The price declined following the Federal Reserve's interest rate hike, as Powell emphasized the need to control inflation.

FOMC Interest Rate Decision

The US central bank raised interest rates as predicted by a quarter point on Wednesday. The Federal Open Market Committee (FOMC) made the move due to ongoing concerns about inflation. Fed Chair Jerome Powell stated that the FOMC is "strongly committed" to getting inflation back to its target of 2%. Consequently, the Committee raised the federal funds rate target range to 4-3/4 to 5 percent.

However, the FOMC also acknowledged the current banking crisis in a statement that accompanied Wednesday's announcement. The statement indicated that recent events could result in tighter credit conditions for households and companies, affecting economic activity, hiring, and inflation.

As expected, the dollar fell to almost a seven-week low as the Fed increased interest rates. The US Dollar Index (DXY) is currently trading at 102.10.

The cryptocurrency market was optimistic that Powell would either not raise rates or make highly dovish comments. However, Bitcoin declined after an earlier surge as Powell predicted that rate cuts in 2023 were unlikely due to the Fed's decision to raise interest rates.

SEC’s Action on Coinbase

The US Securities and Exchange Commission (SEC) has recently been actively pursuing cryptocurrency companies, with Coinbase being the latest target of SEC investigations.

On March 22, the SEC sent Coinbase a Wells Notice, expressing concerns over their listed digital assets, staking services, and other issues. A Wells Notice serves as a warning to a business that enforcement action may be taken against them for potential securities law violations.

However, Coinbase remains confident in the legitimacy of its assets and services.

The SEC's investigation of Coinbase has put pressure on the broader crypto industry, leading to a fall in both the BTC/USD and the overall cryptocurrency market.

BTC/USD Intraday Technical Levels

Support     Resistance

26318          28511

25372          29758

24125          30704

Pivot Point: 27565

BTC/USD – Technical Outlook

Bitcoin experienced a downside correction after reaching the resistance zone of $28,500. However, it found support at around $26,600 and is now trying to increase again. The failure to clear the resistance zone of $28,500, coupled with the Fed's decision to increase rates from 4.75% to 5%, resulted in a bearish reaction that caused BTC to fall below the support zone of $27,500.

The next significant resistance level is around $28,000, and if BTC manages to close above this level, it could signal the start of another major increase, potentially pushing the price toward $28,500 or even the resistance zone of $28,850.

On the other hand, the next major support level is around $26,600, and if BTC falls further, it could test the support zone of $26,000. The next significant support level is around $25,200.

Related:

    * GBP/USD Price Analysis – March 23, 2023

    * NASDAQ Price Analysis – March 23, 2023

    * 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.

Related:

    * BTC/USD Price Analysis – March 17, 2023

    * NASDAQ Price Analysis – March 21, 2023

    * AUD/USD Price Analysis – March 21, 2023

Daily Price Outlook

The BTC/USD is currently trading at 25,718, up by 6.04% in a day. The global financial markets continue to tremble due to Credit Suisse reporting material weaknesses in its finances and the Saudi National Bank refusing to invest further capital to support the struggling Swiss institution.

To address the liquidity concerns over Credit Suisse, the Swiss National Bank intervened on Wednesday and allowed Credit Suisse to borrow up to $54 billion.

Investors have been impressed by the cryptocurrency market's stability amid the banking crisis this week. Additionally, bitcoin's correlation to stocks has been the lowest in months, altering perceptions of bitcoin as a valuable alternative asset.

After a significant surge in cryptocurrencies this week, the BTC/USD price increased as investors assessed the weaknesses in the financial systems of the US and Europe.

Fed Rate Hikes Uncertainty & BTC

Investors are worried that the Federal Reserve may reduce the 50 basis point interest rate increase to improve its resilience against persistent inflation in the United States.

On Wednesday, the US released data indicating a decline in producer inflation and weak retail sales figures, which raised expectations that the Federal Reserve may only slightly increase interest rates at its meeting.

Furthermore, concerns about a global financial collapse have added to the story of falling inflation, reducing the likelihood that the Fed would raise interest rates by 50 basis points. Reuters has also reported that during its meeting on March 22, the FOMC may only increase the federal funds rate by 25 basis points.

The Dollar Index has dropped to 104.06 and may continue to fall as uncertainty around the Fed's interest rate decision increases. Therefore, a weaker US dollar has benefited BTC/USD.

BTC/USD Intraday Technical Levels

Support     Resistance

24435          25446

23813          25835

23424          26457

Pivot Point: 24824

BTC/USD – Technical Outlook

Bitcoin's price is once again rising above the $25,000 resistance level, and it might increase much further if it manages to break through the $26,500 obstacle zone.

Originally, the Bitcoin price plummeted below the $25,000 support zone, and it even dropped below $24,500. The bulls, though, were aggressive near the $24,000 level, barring a further slide. On the upside, there is immediate resistance near $25,900, which is close to the 76.4% Fibonacci retracement level of the decline from the $26,525 swing high to the $23,913 low.

The next important obstacle is near $26,500, and if the Bitcoin price can close over this level, it might spark another rally. If the Bitcoin price fails to break over the $25,900 barrier level, it may begin another drop.

On the downside, the immediate support is near the $25,200 area, with the next major support near the $24,500 area and the 100 hourly simple moving average. If the price falls below this level, it may gather bearish momentum.

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.

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%.

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 Crypto.com, 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

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.