Bitcoin shows signs of rebounding

Bitcoin is showing signs of rebounding after adjusting downwards to a price of 19,591.8 BTC/USD, which is considered a drop below 20,000 BTC/USD after January 14th. This downward adjustment was influenced by negative factors such as the closure of three banks, including Signature Bank, Silvergate Bank and Silicon Valley Bank.

In addition to the closure of the three banks, Circle, the issuer of the stablecoin USDC was also affected by all three banks causing USDC to be pegged at 1 dollar and causing the market to become more concerned resulting in a drop in Bitcoin. However, shortly after Circle's CEO, Jeremy Allaire, confirmed that all reserve tokens had been recovered causing USDC to once again be pegged at 1 dollar.

After the tension in the banking system, Jan Hatzius, an economist from Goldman Sachs expressed his view on the upcoming interest rate hike saying "We don't think the FOMC (Federal Open Market Committee) will raise interest rates at the next meeting on March 22nd. It will only raise interest rates by 0.25%."

The Federal Reserve (FED) has announced the protection of all deposits made by the public in Silicon Valley Bank and Signature Bank. In recent times, the global cryptocurrency companies Coinbase and Paxos had deposited hundreds millions dollars in Signature banks. They have announced that they can withdraw the money in accordance with government protection measures. So this is another positive factor that has led to the price increase of Bitcoin.

Technical analysis data (1H)

Source: Investing.com