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Written By: Marcus Wang
Edited By: Charmyn Ho
U.S. equities saw support in the key resistance levels, while the Fed officials emphasized the need for further rate hikes on different occasions. Meanwhile, the crypto market declined as concerns over the largest crypto bank Silverbank’s solvency surfaced, with both BTCUSDT and ETHUSDT shedding 6.7% and 5.1%, respectively, in the past week.
Bitcoin fell remarkably this week and faces immediate support at $21.6k, the previous low in mid-February. Bitcoin is struggling in a trendline formed since early January, where the breakdown from the trendline may leave more room for another leg down.
On a bright note, the funding rate of Bitcoin perpetual has still maintained above water, while Silvergate-triggered market fear may likely lead to a negative funding rate in the short term. Furthermore, market participants have been cautious of potential adjustments since two weeks ago, leading to lower-than-expected long liquidations on Bitcoin futures and possibly lower volatility this time. As such, Silvergate’s insolvency might not see a similar magnitude of drawdown as FTX’s fallout in November.
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Similarly, Ether broke down from its 20-day and 50-day EMA, facing support at the level of the 100-day EMA at $1,503. The RSI print has been staying in the neutral zone for weeks and further drawdown may push it to enter the oversold zone soon. On the other hand, at-the-money ETH options see an uptick in their implied volatility, while the put/call ratio of ETH options experiences an upward trend.
Check Out the Latest Prices, Charts, and Data for ETHUSDT!
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