Analysis Cryptos

Bitcoin and Ethereum Prices Stabilize After Silvergate’s Viability Concerns

Bitcoin and Ethereum Prices Stabilize After Silvergate's Viability Concerns

Introduction:

The cryptocurrency market experienced a significant plunge after Silvergate, a crypto-based bank, announced a reduction in its workforce and the discontinuation of its Exchange Network. As a result, Coinbase, Galaxy Digital, and Bitstamp suspended payments and withdrawals through the Silvergate payment network. The negative sentiment and rising rate expectations weighed on digital assets, pushing BTC below $20-day MA (moving average). However, prices have stabilized, and the recent decline has driven the CCI into oversold territory.

Bitcoin and Ethereum Prices Stabilize After Silvergate’s Viability Concerns

The cryptocurrency market experienced a significant plunge after Silvergate, a crypto-based bank, announced a reduction in its workforce and the discontinuation of its Exchange Network. As Coinbase, Galaxy Digital, and Bitstamp reacted to the viability concerns, major crypto’s plunged before finding support at key technical levels.

Bitcoin prices dropped below $20-day MA (moving average) and are now holding as resistance around $23,600. The largest digital asset returned to a narrow range of support and resistance, and Ethereum dropped below $1,600 before finding support at $1,550.

However, the recent decline has driven the CCI (commodity channel index) into oversold territory. With Bitcoin prices currently trading sideways around the $22,500 mark, a break of $22,000 could make BTC/USD vulnerable to a sharper pullback. Below this level is the February low which could open the door for bearish continuation toward $20.000.

As Ethereum rises above another big spot of support at $1,550, the next barrier of resistance has formed at $1,600, which could pave the way for a move toward the 50-day MA (moving average) at $1,610.

Conclusion:

Bitcoin and Ethereum prices have stabilized after Silvergate’s viability concerns. Although the cryptocurrency market experienced a significant plunge, prices have stabilized, and the recent decline has driven the CCI into oversold territory. Bitcoin prices are currently trading sideways around the $22,500 mark, and a break of $22,000 could make BTC/USD vulnerable to a sharper pullback. On the other hand, Ethereum has risen above another big spot of support at $1,550, and the next barrier of resistance has formed at $1,600, paving the way for a move toward the 50-day MA (moving average) at $1,610.

Author
Alice Scott is a prolific author with a keen interest in the stock market. As a writer for Livemarkets.com, she specializes in covering breaking news, market trends, and analysis on various stocks. With years of experience and expertise in the financial industry, Alice has developed a unique perspective that allows her to provide insightful and informative content to her readers.