The banking crisis spread from the United States to Europe last week. The problem started after Credit Suisse's biggest investor, the Saudi National Bank said that it will not be able to add to its existing investments in the Swiss Bank due to regulatory concerns. That started a downward spiral in Credit Suisse, which ended with the rescue takeover of the 167-year-old bank by UBS over the weekend.

The urgent deal was brokered by the Swiss national bank to avoid a contagion when markets opened on March 20 and to shore confidence in the Swiss banking system. However, not everybody is happy with the deal. The Swiss regulator FINMA said that Credit Suisse’s additional tierone bonds will be written to zero. That meant a $17 billion loss for Credit Suisse’s bondholders.

Bitcoin broke and closed above the $25,000 resistance on March 18 which completed the inverse head and shoulders (H&S) pattern. The bullish momentum picked up further on March 19 and the BTC/USD pair extended its rally.

The pair could first reach $30,000 and thereafter touch $32,000. We expect the bears to mount a strong defense in this zone. If the price turns down from the current level or the overhead resistance, the key level to watch out for on the downside is $25,000. If bulls defend this level during the next retest, it will suggest that $25,000 is acting as the new floor. The bulls will then again try to drive the price above $32,000.

The rising 20-day exponential moving average (EMA) and the relative strength index (RSI) in the overbought zone indicate that bulls have the upper hand. If bears want to regain control, they will have to pull the price back below the moving averages. If they do that, it will suggest that the rally above $25,000 may have been a bull trap.

Lastly please check out the advancement’s happening in the cryptocurrency world.

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