Multiple banks in the United States, including Silvergate, Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank, have been under enormous stress in the last two weeks, requiring government or private market intervention. Also, European banks such as Credit Suisse and Deutsche Bank need extra help to stay afloat.
According to The U.S. Federal Reserve data, the deposits at all U.S. commercial banks fell by $98 billion within one week. In the meantime, investors are increasingly diversifying their portfolios and placing their trust in alternatives like Bitcoin. During this banking crisis, Bitcoin has rallied by 35% in the last two weeks to as high as $28,000.
At the time of writing, Bitcoin (BTC) price is currently $27,881, increase for 2.10% for the past seven days. So does Ethereum (ETH) that increased for 0.54% in the last seven days with current price of $1,765.
Despite the dire situation, many experts believe that the banking crisis will ultimately be resolved, with governments and central banks working tirelessly to prevent bank failures both in the U.S. and internationally.
BTC's Stochastic Oscillator in the daily chart signals an overbought condition, while trading is range-bound with downward movement beyond $28,000.
The current probability of a sell-off is higher than a rally, with intraday trading rangebound and intraweek trading mildly bearish.
Despite these bearish indicators, traders may consider the $25,000 level for Long DCA as it has previously acted as solid support.
Ethereum (ETH) trades in a range-bound consolidation, with little movement beyond support and resistance levels. Despite this, ETH appears slightly bullish than BTC, and intraday trading remains range-bound.
Meanwhile, intraweek trading is neutral, indicating a balanced approach to investing in ETH.
It's worth noting that altcoins still need to catch up to BTC price action, which has driven the overall market. Thus, traders may find opportunities in ETH and other altcoins.
This material is for general information and is not investment advice, a recommendation, or solicitation to buy and sell any cryptocurrencies, digital assets, securities or derivative instruments, or to make any investments. Mobee is under no obligation to update this report based on information and events that occurred after this report was created and published. Any suggestions or recommendations in this report may not be appropriate for certain users.