Silvergate Woes Push BTC Below Key Support: Is a Rally Ahead?
• BTC dropped sharply on 2 March following Silvergate’s woes, breaking the ascending line and sending most of the crypto market into the red.
• Bears must now overcome two hurdles to dent any prevailing bullish sentiment completely: the 50-day EMA ($22,373) and 100-day EMA ($21,204).
• Despite negative sentiment, Mean Coin Age has steadily risen over the past few weeks, suggesting potential for a rally ahead.
BTC Price Drops Following Silvergate Woes
BTC dropped sharply on 2 March following Silvergate’s woes, sending its stocks crashing over 50% and sending most of the crypto market into the red. At press time, bears were struggling to bypass key support levels at the 50-day EMA ($22,373) and 100-day EMA ($21,204). The RSI showed increased divergence with price action since mid-January as well as retreating Average Directional Index (ADX), suggesting a potential retracement or consolidation.
Silvergate Woes Impact Crypto Market
Investors reacted cautiously to Silvergate’s development which saw major crypto clients like Coinbase suspending business with them. This led some investors to retreat to stablecoins while leaving most of the crypto market in the red. BTC had previously posted solid gains after jumping from $16.61K in early January to $25.25K in February but was unable to sustain its momentum when it broke below an ascending line due to Silvergate’s woes.
Current Market Sentiment
According to Santiment, BTC’s sentiment remained negative in the past few days after sustaining fluctuations a couple of weeks before; however Mean Coin Age has steadily risen over this period indicating a wide-network accumulation – a bullish signal which suggests potential for a rally ahead. If bulls succeed in pushing BTC above both support levels then they could attract new buying spree pushing it towards overhead resistance of $25.25K again.
RSI Divergence & Retreating ADX
The RSI showed increased divergence with price action since mid-January while retreating Average Directional Index (ADX) confirms weak uptrend and suggests potential retracement or consolidation if bears fail to overcome current hurdles posed by 50 & 100 EMAs at $22373 & $21204 respectively..
Despite sharp drops in BTC prices accompanied by spikes in stablecoins held by investors as they retreated from negative sentiment surrounding Silvergate’s crash; mean coin age has steadily risen indicating wide network accumulation – a bullish signal suggesting potential for an upcoming rally if bulls can manage push price back above both EMAs mentioned above at $22375 & 21204 respectively