Where Is Bitcoin Heading? Potential Support Levels to Watch After Silvergate Share Collapse

The news from Silvergate Bank and FTX  caused Bitcoin’s price to drop a couple of days ago, and the digital currency has had a tough time rebounding back. Bitcoin is dragging the entire cryptocurrency market down, and Silvergate Bank’s current struggles are only making the situation worse.

Last week, Silvergate Bank announced that it would need additional time to file its annual report and warned of potential insolvency within the year. In response, a number of crypto companies declared they were terminating or suspending their agreements with the bank.

The initial alarm created by the bank’s potential effects on cryptocurrency may have been overblown. If it does not cause a ripple effect, then any negative consequences should be minimal. 

The United States equities markets are attempting to start a recovery. This suggests that traders continue to add risk to their portfolios at lower levels. This risk-on sentiment may limit the downside in Bitcoin and select altcoins.

Looking at today’s analysis, the Bitcoin price is currently trading at $22,402, a slight drop due to recent events. The leading cryptocurrency is currently trading above the $22,331 support area and is about 4.66% away from its all-time high of $23,880 in February.

The digital currency has struggled to break above the psychological resistance level of $22,497. If Bitcoin fails to break above this level, then the price could slide further and potentially test the $22,000 zone. 

On the other hand, if Bitcoin manages to reclaim its previous high of $23,880, then it would be a positive sign for the cryptocurrency industry as a whole. This could lead to a resurgence of investor confidence and increased buying pressure.

The technical indicators also suggest that Bitcoin will likely find support around the $22,331 and $22,200 levels. If these areas hold, then it would indicate that there is still intense buying pressure in the market and could help Bitcoin reattain its previous highs. The moving average indicator is currently at the $22,986 level and is likely to remain flat for now.

The MACD indicator is in negative territory, with the signal line below the MACD line, which suggests that the digital currency is still in a bearish trend. The stochastic indicator shows that Bitcoin is in oversold territory at the moment, which could indicate that a corrective wave is likely.

Overall, despite the news from Silvergate Bank and FTX, traders should pay attention to the current price action in Bitcoin and other altcoin prices. Watching for potential support areas could help find a good entry point and indicate whether the current downtrend is just a temporary dip or if it’s the start of a more significant sell-off. 

Disclaimer: In good faith, we disclose our thoughts and opinions in our price analysis and all the facts we give. Each reader is responsible for his or her investigation. Reader discretion is advised before taking any action.

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• Source: https://investorbites.com/where-is-bitcoin-heading-potential-support-levels-to-watch-after-silvergate-share-collapse/