A Possible Bounce in Sight despite Silvergate Failure- Bitcoin, Ethereum, Dogecoin Experience Drop
Bitcoin, Ethereum, and Dogecoin all experienced bearish reactions on Friday, with Bitcoin dropping over 2% and Ethereum and Dogecoin edging over 1% lower. The drop comes after Silicon Valley-based SVB Financial Group’s fundraising attempt and crypto bank Silvergate Capital Corp’s announcement that it will shut down, leading investors to fear that the announcements could be indicative of larger problems in the industry. Stubborn inflation and soaring interest rates have added downward pressure to banks, which saw fewer deposits in Q4 2021. Liquidity has been drained from the banking industry, leading to fears that the problem could spread if the central bank continues with its hawkish policy for much longer. On a technical level, all three cryptos are expected to bounce over the next few days due to signals that have developed on their charts. Bitcoin also displayed a bearish Marubozu candlestick during Thursday’s 24-hour trading session, indicating lower prices for the crypto on Friday. However, if Bitcoin closes Friday’s session with a significantly lower wick, it will print a bullish hammer candlestick that could predict higher prices on Saturday. A bounce is also expected due to Bitcoin’s relative strength index measuring at around 27%, indicating oversold territory. Support for Bitcoin lies below at $19,915 and $18,385, with resistance above at $20,545 and $21,313. Ethereum and Dogecoin were both working to print hammer candlesticks on Friday, indicating a potential bounce, with Ethereum’s RSI curling higher, which is bullish for the short-term. Ethereum’s support lies below at $1,308 and $1,231, with resistance above at $1,564 and $1,717. Dogecoin’s resistance lies above at 7 cents and $0.075, with support below at $0.065 and $0.057.