- Bitcoin price outlook after this week’s Silvergate and Tether news.
- BTC is hovering around $22,400, with key resistance near $23k amid a potential technical breakout to YTD highs.
- The $20k area is an important and psychological level for the bulls.
bitcoin price Remains below $22,500 after posting a sharp decline on Friday following a combination of broad market weakness and downside crypto-related news,
However, with the price above $22,000, the technical outlook suggests that the bulls may still have a chance to reach new year-to-date highs in March or April.
Bitcoin Price Prediction: BTC Slumps Amid Silvergate Bank and Tether News
On Wednesday, crypto-friendly bank Silvergate (SI) revealed that it was a little deeper into trouble with an SEC filing that it would delay its financial report. The crypto bank then announced the halving of its payments network Silvergate Exchange Network (SEN), adding further uncertainty to its operations following a previously revealed $1 billion loss.
In fact, selling pressure for BTC increased as major crypto firms including Coinbase and Paxos announced a switch from Silvergate to alternative banking partners.
But bitcoin price touches low of $22,000 as more negative news emerges – Wall Street Journal publishes a Article Related to Tether, the company that issues the world’s largest stablecoin USDT. Reportedly, used Tether and Bitfinex”forged documentsTo acquire bank accounts amid questions over the stablecoin’s reserves.
Crypto trader and investor Scott Melker elevated the WSJ’s report in a Twitter thread on Friday.
The allegations in the report could have significant implications for Tether and the wider crypto market. If Tether’s dollar reserves are not what is being claimed, it could lead to a drop in the value of the cryptocurrency.
— Wolf of All Streets (@scottmelker) March 3, 2023
Bitcoin Price Outlook: What Next for BTC/USD?
The RSI on the 4-hour chart remains largely flattened near the lower band as the price action mainly consists of Doji prints. While bitcoin is above the support base created in early January, there is indecision indicated by the doji candlesticks.
Bitcoin price volatility on the 4-hour chart. Source:trading view
If the bears take a further charge, BTC/USD will likely retest the aforementioned support line and potentially break $22k to move to another key level near $21,600. Beneath this we can see a retest of the all-important $20k level.
On the upside, the immediate hurdle is the $22.5k area, with strong supply areas currently expected at the price levels indicated by the 50 and 200 moving averages.
The outlook on the daily chart shows that the RSI is sloping up to suggest that the bears may have the upper hand.
However, there is a possible formation of an inverted head and shoulders pattern. The neckline of this potential inverse H&S pattern could be in the $25k area. In any case, immediate key price levels to watch are $22,900 on the upside and $19,712 on the downside, as indicated by the 50-day and 200-day moving averages.
Bitcoin price forecast levels on the daily chart. Source:trading view
Post Bitcoin Price Prediction: BTC Outlook After Silvergate and Tether News first appeared coinjournal,