Bitcoin Price Prediction - Can BTC Break Free of the Banking Crisis Blues?

Bitcoin Price Prediction – Can BTC Break Free of the Banking Crisis Blues?

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Sam Cooling Last updated: March 9, 2023

It’s Thursday, March 9, and Bitcoin (BTC) continues to hammer down to 3-week lows, as Silvergate’s banking blues add momentum to a 17-day, -14.5% slide.

Can Bitcoin (BTC) catch a bounce or will prices collapse back below $20,000? Find out in this Bitcoin price analysis.

Bitcoin Fundamentals: The Good, The Bad, and The Ugly

The Good

Equities markets are looking stable, the Nikkei rose about 0.5% as Asia’s financial markets opened – whilst US indexes continue to range.

The NASDAQ and S&P500 are both enjoying a small uptick courtesy of growth in tech stocks.

#MtGox largest creditor will not sell it’s returned Bitcoin. pic.twitter.com/3bKuf0UeKv

— tedtalksmacro (@tedtalksmacro) March 9, 2023

Furthermore, fears of a volume influx from Mt. Gox creditors have been temporarily quelled by an announcement that Mt Gox’s biggest creditor doesn’t plan to sell their stolen BTC.

BTC markets are further reassured by Wednesday’s positive start to Grayscale’s oral testimony in its lawsuit against the SEC, as the fund continues to pursue conversion of GBTC to a Bitcoin Spot ETF.

The Bad

However, sentiment is once again on edge as Federal Reserve Chairman Jerome Powell returns to Congress in a few hours to speak to the House of Representatives’ Financial Services Committee.

Markets are awaiting further clarification on the Fed’s position in the face of stubbornly high core inflation.

FED Chairman Powell just said no one should assume the Federal Reserve can protect the economy in a debt default.

Glad that I have #Bitcoin in cold storage

— Quinten | 048.eth (@QuintenFrancois) March 8, 2023

Tuesday’s message to the Senate Banking Committee seemingly confirmed expectations that interest rates would remain higher for longer.

With players now pricing in the prospect of a 50 basis point interest rate hike in the coming weeks, it seems Powell’s dovish tone in the New Year may have been short-lived.

Indeed, with tomorrow seeing the release of February’s US unemployment data, markets are desperate to see whether fears of fluke economic growth in January could be true.

The Ugly

Besides Powell’s pursuit of mythical 2% core inflation, crypto markets are facing uglier headwinds as the Silvergate crisis worsens.

The crypto banking infrastructure provider announced an immediate winding down of banking operations.

With a voluntary liquidation of the bank, and a discontinuation of the Silvergate Exchange Network (SEN) – many wonder how big CEXs in the industry will adapt.

As the bank of choice for crypto, Silvergate Bank's failure is disappointing, but predictable. I warned of Silvergate's risky, if not illegal, activity—and identified severe due diligence failures. Now, customers must be made whole & regulators should step up against crypto risk.

— Elizabeth Warren (@SenWarren) March 8, 2023

This comes following a run on deposits at Silvergate back in November in the aftermath of the FTX collapse.

Bitcoin Magazine’s Dylan LeClair explained why Silvergate has been forced into closure.

“Silvergate’s share price isn’t imploding due the performance of a crypto token as was the case for many companies in the crypto winter of 2022,” explained LeClair.

“But rather from a deposit exodus that has forced the firm to liquidate long-duration securities at a loss in order to remain liquid.”

Bitcoin (BTC) Price Analysis

Bitcoin (BTC) continues to hammer down as price action becomes perilous, with New Year’s remnant rally structure on the precipice of complete breakdown.

Fighting on at a current price of $21,636 (a 24-hour change of -0.25%) – Bitcoin Bulls are desperate to gain a foothold against cascading movements around $21,750.

Worse still, an emerging rounding top pattern on the chart is becoming a huge bearish technical signal – potentially spelling disaster for BTC.

This is now the 17th day of Bitcoin retracement, which has continually posted lower highs and lower lows since rejection from the key level of $25,000.

As BTC tumbles 7% away from the once-supportive 20-Day MA, the extent of the two-week bleed-out has now reached -14.5%.

Any further downside price action here would completely smash the lower support trend of the 2023 rally trading channel.

The RSI offers some hope for Bitcoin, with the gradual cool-down on the indicator approaching ‘oversold’ levels at 37.

However, the MACD is still a bearish red flag at -262, as BTC’s tumble below the 20-Day MA continues to worsen.

On-Chain sentiment remains relatively unchanged, with Bitcoin net flow now on its 22nd day of exchange in-flow from cold storage.

The Exchange Net Position Change chart below showcases a slight decline in volume, signalling that the worst of the ongoing sell-off could soon be over.

Open Interest levels are still on the climb, as traders appear to be emboldened by the clarity from Powell on Tuesday.

$60M of additional interest was moved onto the table in the last 12 hours.

The Long to Short ratio shows that the sentiment of this new open interest leans decidedly bearish – as a slight majority of traders have moved towards taker sell positions in the past 12 hours.

Overall, with technical structure becoming increasingly perilous, bearish signals from the MACD, a continuation of exchange inflows on-chain, and taker sell open interest stacking up – the message from the markets seems to be that Bitcoin will push down further.

This is likely to catch support at the next lower support level of $20,500 (-5.18%) – however, a move to here would destroy technical structure – leaving BTC with an uncertain future on the STF.

Upside potential continues to look to $24,000 (+11%) to reclaim position above the 20-Day MA, which would leave BTC poised to re-test the key resistance level at $25,000.

This gives Bitcoin (BTC) an improving Risk: Reward structure, as the ratio has now climbed to 2.12.

Despite this attractive entry – it seems likely Bitcoin could push down further – so it could be worth waiting for a better entry.

Better Trades Than Bitcoin (BTC)? – Check Out These Altcoins

In the meantime, your capital shouldn’t sit idle in face of stubborn and persistent runaway inflation levels.

One of the best ways you can hedge downside sentiment in the market is by securing your funds in top-quality presale funding rounds.

These can provide extremely lucrative returns, allowing traders to stack up on altcoins with moon-shot potential before they reach CEX listing stage.

With CEX listing prices significantly higher than presale prices, this provides an almost guaranteed built-in profit for 2023.

So with that said, here are two top-tier presale recommendations from the B2C analysts that could offer supersized returns this year.

Walk the Way of the Warrior: Fight Out (FGHT)

With the play-2-earn narrative firmly back in market view following the STEPN airdrop, many investors are looking to find safer GameFi trades with better upside potential and less precarious price action.

One solid contender garnering significant attention on crypto Twitter is Fight Out (FGHT).

Positioning itself as a more advanced and better-developed STEPN, this new play-2-earn dApp aims to take you on a journey to becoming your ultimate fighter self.

Where STEPN failed – with one-dimensional pedometers measuring step count and an overpriced ecosystem that forced players into heavy transactions to unlock any real return.

Fight Out aims to achieve success by providing a sophisticated and versatile application that can gauge and incentivize various types of physical activity, ranging from boxing workouts to late-night weightlifting sessions at the gym.

All of this is based around a soulbound avatar (think of this like a STEPN sneaker that can’t be bought or resold) – custom designed by the player, this NFT embodies the user’s fitness journey.

As you train and work out, this is recorded, and levels up your soulbound avatar’s stats in real-time – while also earning you in-game $REPS tokens.

These $REPS tokens are redeemable for network native $FGHT, which can be cashed out, spent in the NFT marketplace, or put up for grabs in high-stakes PVP community competitions that pit you against other users to see who can train hardest that week.

What’s more? As part of an emphasis on community development, Fight Out has partnered with a number of elite athletes to lead community training sessions, including world champion boxer Savannah Marshall.

To make the most of the Fight Out presale you will need to act quickly, with more than $5.3 million raised and presale token prices increasing incrementally every 12 hours in a fair launch.

The Fight Out team recently announced the launch of a lucrative referral promo link program. This gives users the ability to receive a 5% commission for signing up their friends.

Ready to become a #FightOut affiliate and start earning? It's as easy as connecting your wallet and getting your custom link.

Join us now, and let's grow together! https://t.co/9pikKGRjSd #AffiliateProgram #Affiliate #Altcoin pic.twitter.com/dpGDhXk25Z

— Fight Out (@FightOut_) March 7, 2023

All users need to do is go to the Fight Out homepage, connect a valid crypto wallet, and then click on the 5% referral link button.

At this point, a unique referral link will be generated to earn you a commission. Share the link with friends and family or post it to your social media.

This means every time someone buys the $FGHT token – you receive 5% of the purchase amount.

C+Charge (CCHG)

C+Charge ($CCHG) is a new cryptocurrency that’s shaking up the carbon credit industry.

This innovative start-up aims to take advantage of projected $2.4 trillion growth in the industry by 2027. And you don’t have to look far to see its relevance.

Hey C+Charge Crew!

BIG ANNOUNCEMENT – We are going LIVE on @BitmartExchange soon

Join our community now and don't miss out on all news about our first #exchange #listing!https://t.co/ixe18bPqzI pic.twitter.com/OtXf9b4eZf

— C+Charge (@C_Charge_Token) March 6, 2023

Up and down the roads, electric vehicle (EV) charging stations are popping up for fleets of gleaming Teslas and other EVs – C+Charge is proposing a chance for everyday people to claim a slice of the pie.

The company offers a Peer-2-Peer (P2P) payment system for Electric Vehicle (EV) charging using blockchain technology.

With this system, EV drivers can earn carbon credits and profit from the industry’s growth.

Currently, only big EV manufacturers like Tesla are taking advantage of carbon credits. Why should these profits centralize in the hands of a few?

C+Charge aims to level the playing field and put these rewards in the hands of EV owners – and investors are excited with more than $2.63m raised.

The presale of the CCHG token is already underway but soon to end in just 6 days, giving early investors a chance to get in on the ground floor of this eco-friendly project. There is also a $50k giveaway for early bird investors.

Join the C+Charge revolution today and be a part of a project that’s making a difference for the environment.

Author: Sam Cooling

Follow @crypto_cooling

Sam is a financial journalist with a focus on cryptocurrency market news, based in London - his former publications include Yahoo Finance and Coin Rivet.
With a Master’s Degree in Development Management from the London School of Economics, Sam has previously worked as a Technology Consultant for The…

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Bitcoin Price Prediction – Can BTC Break Free of the Banking Crisis Blues?