Bitcoin price edged higher on Wednesday to temporarily revisit $30k. However, the increased sell pressure pulled the asset down to close the day on a long-legged doji candlestick, which signifies indecisiveness between bulls and bears.
The daily volatility came amid renewed fears of United States banking collapse after First Republic Bank (NYSE: FRC) shares dropped 30 per cent on Wednesday. As a result, FRC shares are down more than 95 per cent YTD.
Notably, the bank announced in its first quarter earnings results that deposits declined more than 35 per cent in the first quarter compared to the same time last year. However, the bank anticipates being bailed out by the Fed in a similar version to Signature Bank and Silicon Valley Bank.
Closer Look at Bitcoin Market Outlook
With increased daily volatility, more than $178 million in the Bitcoin market has been liquidated in the past 24 hours. About 51 per cent of Bitcoin liquidations in the past 24 hours were long traders, thus displaying the intensity of the tug-of-war between the bulls and bears.
According to market intelligence platform Santiment, the low Bitcoin address activity amid next week’s FOMC statement sent shockwaves among many traders. Moreover, there is a high potential for an imminent recession before the end of this year.
Price Analysis
According to a popular crypto trader Jason Pizzino, all eyes are on today’s daily close. Essentially, if Bitcoin price closes Thursday trading above $29k, the bulls will have the upper hand in the coming weeks. On the other hand, if Bitcoin price closes below $29k, crypto traders will be looking at a possible head and shoulder formation that leads to further market capitulation.
Source: https://coinpedia.org/bitcoin/btc-price-analysis-bitcoin-bull-run-fades-below-30k-amid-u-s-banking-crisis/