<p>Market picture</p><p>The crypto
market is now showing increased volatility. On Monday morning, the price
climbed from Friday’s low of $19.5K up to $22.7K. There are more fundamental
factors behind bitcoin’s decline, while we see tech behind the rebound in
recent days.</p><p>The problems
at Silicon Valley Bank triggered a sell-off in risky assets, including bitcoin.
At one point, it fell below its 200-day average, although it was higher at
Friday’s close, attracting buyers. Later, the RSI on the daily timeframe moved
out of the oversold territory – another early bullish signal.</p><p>However, the
upside amplitude was provided by reduced liquidity. On Monday, Bitcoin faces an
important test of market sentiment. During the day, we must watch closely to
see if we have a clean sell-off by the hawks. If so, it’s an important signal
that the recent rally was false and that the big players are still selling at
better prices.</p><p>Potential
buyers would still be better off waiting for a fix above $23,000 to confirm a
bullish reversal.</p><p>According to
CoinMarketCap, the total capitalisation of the crypto market passed $1 trillion
on Monday morning.</p><p>Stablecoin
USD Coin (USDC) lost its peg to the US dollar on Saturday, falling below $0.88
amid the collapse of Silicon Valley Bank (SVB), which held $3.3 billion of its
reserves. DAI is also in trouble, falling below $0.90 as USDC partially backs
the token. At the same time, many other stablecoins have crossed the $1.01 mark.</p><p>News background</p><p>Tron founder
Justin Sun proposed the creation of a bank for the needs of the crypto industry
amid the collapse of Silicon Valley Bank.</p><p>Michael
Barr, deputy head of the US Federal Reserve, has proposed creating a group to
develop the regulation of crypto assets. According to him, if the Fed fails to
regulate stablecoins, their widespread adoption could threaten the US economy.</p><p>The US
Treasury unveiled plans for the 2024 budget replenishment and said it intends
to impose a 30% excise tax on mining companies‘ electricity use.</p><p>Renowned
economist and cryptocurrency sceptic Peter Schiff called for cryptocurrencies
to be sold as the industry is „about to see more bankruptcies“. He
pointed to the collapse of Silvergate Bank and US economic data that would
force the Fed to raise interest rates.</p><p>Twitter CEO
Elon Musk said he was „open to the idea“ of buying the troubled
Silicon Valley Bank to turn the social network into a financial hub and digital
bank.</p><p>This article was written by <a target=“_blank“ href=“https://www.fxpro.com/“ target=“_blank“ rel=“follow“>FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>

This article was written by FxPro FXPro at www.forexlive.com.

<p style=““ class=“text-align-justify“>It would be interesting if there is a Q&amp;A session to follow his speech but given the circumstances, I think that is highly unlikely. But we’ll see.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>Gold enjoyed a stellar start to the new year as it capitalised on its usual January seasonal tailwind, before things went awry in February in a $150 drop from the highs at the start of the month. When Fed chair Powell delivered more hawkish remarks last week it took price back near its 100-day moving average (red line) but amid the whole SVB situation, gold bugs are finding renewed vigour in a push towards $1,900 now.</p><p style=““ class=“text-align-justify“>We are currently seeing price trade at its highest levels in over five weeks, with buyers looking to try and breach the 9 February high of $1,890.</p><p style=““ class=“text-align-justify“>This comes as the dollar remains on the softer side today, as markets are paring back Fed rate hike odds. The March decision is essentially <a target=“_blank“ href=“https://www.forexlive.com/news/fed-rate-hike-odds-have-turned-to-become-a-coin-flip-now-20230313/“ target=“_blank“ rel=“follow“>a coin flip</a> now and that’s music to the ears of gold buyers. Adding to that is the sharp drop in bond yields and gold has rallied by over 4% in the past three trading sessions.</p><p style=““ class=“text-align-justify“>The major headwind for gold is that central banks will have to keep tightening amid high inflation. However, if policymakers have already started to break certain parts of the economy, then perhaps we could see a policy pivot come into play sooner and that will be a really massive tailwind for the yellow metal in the year(s) to come.</p>

This article was written by Justin Low at www.forexlive.com.

<p>On the daily chart below, we can
see that the sellers eventually managed to break below the key <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> level at 32684. The recent
breakout was caused by the collapse of the <a target=“_blank“ href=“https://www.forexlive.com/news/svb-collapse-whats-next-20230312/“>Silicon
Valley Bank</a> on Friday which spread fears of contagion in the
banking system and led to risk aversion across the board. </p><p>The Treasury and the Fed worked
during the weekend on a solution for this particular matter and came up with an
<a target=“_blank“ href=“https://www.forexlive.com/centralbank/us-official-says-banks-not-being-bailed-out-nah-theyre-being-bailed-out-heres-how-20230312/“>emergency
lending facility</a> that would protect the depositors and give the
banks the chance to convert their long term securities at original value
instead of being marked to market. This development pushed the markets up as
the futures market reopened and the price rallied all night long. </p><p>On the 4 hour chart below, we can
see that the overnight rally stalled at the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a> and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a>. This is a zone where the
sellers may be leaning on and the key <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 32684 offers a good
protection for shorts. The buyers will need to break above the 32684 level if
they want to gain control and target the major trendline as the first target. </p><p>What comes next though, should be
decided by the CPI report tomorrow. The market is currently pricing a <a target=“_blank“ href=“https://www.forexlive.com/news/oh-how-the-tables-have-turned-20230313/“>higher
chance of 25 bps hike</a> at the March meeting and completely priced out the
50 bps chance. A beat across the board in the data may raise odds of the 50 bps
hike and push the market lower, while a miss should give the buyers lots of
strength to push higher and make new higher highs. </p><p>In the 1 hour chart below, we can
see that the resistance zone at 32684 is pretty strong. We have <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a> of the trendline, the 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level and the above-mentioned resistance. This
will be the first line of defence for the sellers. If the buyers break above,
the sellers may want to wait for the price to approach the major trendline
first before starting to pile in. </p>

This article was written by ForexLive at www.forexlive.com.

<p style=““ class=“text-align-justify“>They add that checks will continue to clear and that loan payments by customers should be made accordingly as per usual, with ‚Bridge Bank‘ set to open and resume normal banking hours. Former Fannie Mae CEO, Tim Mayopoulos, has been named as CEO.</p><p style=““ class=“text-align-justify“>They’re still waiting on that buyer surely. Tick tock, tick tock.</p>

This article was written by Justin Low at www.forexlive.com.