The yield on the benchmark US 10-year Treasury note slipped below 4% last week, triggering a sharp recovery in the US equities markets. The 10-year Treasury is closely watched by Market observers because it influences mortgages and car loans. And a soaring yield could create problems for the economy.
The strength in the US stock markets failed to ignite buying in Bitcoin, which dropped about 4.77% last week. The weakness in the cryptocurrency sector was due to the crisis at Silvergate. The crypto bank announced a delay in filing its annual report and said that it was shutting its popular instant settlement service SEN on March 3. It also warned that it was uncertain if the bank could continue to operate for the next twelve months.
We said in the previous analysis that Bitcoin’s price may remain volatile between $21,500 and $25,000 and that is how it has been. The moving averages are about to complete a bearish crossover and the relative strength index (RSI) has dipped into the negative territory, indicating advantage to the bears.
Any recovery attempt is likely to face strong resistance at the 20-day exponential moving average (EMA). The bears will then try to sink the price below the strong support of $21,500 but the bulls are expected to defend the level with all their might. If the price bounces off $21,500, the BTC/USD pair may extend its consolidation for a few more days. Conversely, if the price breaks below $21,500, it will suggest that the bulls have given up.
That may start a deeper correction toward the psychologically vital support at $20,000. On the upside, a break and close above the 20-day EMA will signal that the bulls are attempting a comeback. The pair could then rise to $24,000 and thereafter to $25,000.
Lastly please check out the advancement’s happening in the cryptocurrency world.
Enjoy the issue!