The price of Bitcoin (BTC) has slid to new levels, a trajectory that has invalidated the asset’s push towards reclaiming and holding above $25,000. The latest correction attributed to the liquidity concerns at Silvergate bank has resulted in Bitcoin facing the possible threat of retesting new lows moving into the weekend.
Onchain data from crypto analysis platform IntoTheBlock, shared by a digital asset analyst by Twitter pseudonym Diamondxbtee on March 3, indicates that the maiden crypto has plummeted through a significant demand zone at $23,000.
According to the analysis, the trajectory has, in return, triggered a strong downward momentum likely to push Bitcoin to retest levels below $20,000. However, BTC has an opportunity to rally if it manages to break the $23,700 barrier.
Bitcoin price analysis
At the moment, Bitcoin is changing hands at $22,361 after sliding by over 4% in the last 24 hours. On the weekly chart, BTC is down over 5%.
The latest correction has translated into Bitcoin’s one-day technical analysis facing bearish sentiments. A review of the gauges on TradingView shows that the summary of technicals, moving averages, and oscillators are for the ‘sell’ sentiment at 14, 10, and 4, respectively.
Silvergate bank repercussions
Bitcoin is among the assets facing the repercussions of the turmoil at Silvergate Capital, a U.S. bank known for its support of cryptocurrencies.
The bank is currently re-evaluating its ability to sustain operations. This has led to many digital-asset exchanges, stablecoin issuers, and trading entities refraining from utilizing its popular payments network that enables instantaneous fund transfers between crypto firms.
As a result, the digital-asset industry is grappling with the challenge of finding alternative payment solutions. At the moment, the uncertainty from the incident has led to speculation that regulators might crack down on the sector, further dampening the ability of cryptocurrencies to exit the bear market.
According to a Finbold report, the Silvergate liquidity incident has been identified as the main ‘short-term sentiment killer.’ The fallout saw Bitcoin also lead the market in wiping out about $50 billion in capital.
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