Bitcoin (BTC) Could Be Warming Up For Another Rally, Here’s Why
April 26 2023 - 1:00PM
NEWSBTC
While Bitcoin’s (BTC) price action since the beginning of the year
has been impressive, surging by over 80% since January due to
several factors, the asset has plummeted in recent weeks for other
reason that include the continuous regulatory scrutiny in the
industry. However, according to recent reports, the asset may
just be gearing for another rally. In the last 24 hours, another
major United States bank was reported to be facing a financial run
signaling insolvency issue or bankruptcy. Another Major Bank
Collapse Could Impact Bitcoin Rally According to the latest update,
First Republic Bank (FRC) is currently experiencing a financial run
as the bank disclosed it lost nearly $100 billion in deposits amid
last month’s banking crisis. The bank said it is currently
unloading between $50 billion and $100 billion in debt instruments
as part of its “strategic options” to resolve the massive capital
outflow. However, the White House has expressed concern about a way
to assist the bank out of insolvency, as reported by the Financial
Times, which revealed that officials from the Biden Administration,
the Federal Reserve, and the Treasury Department have consulted the
bank’s top executives in the past few days. Related Reading:
Notorious B.I.D. 2.0: Biggie-Sized Bidder Will Fuel Bitcoin Rally
Again? Despite this, investors and traditional bankers seem to have
begun panicking, searching for a safer haven or alternative for the
store of value. Following the news, the First Republic shares
plunged by more than 40% reaching an all-time low in Tuesday’s
trading session. Particularly, FRC shares hit an all-time low
of $8.10 as the markets closed on Tuesday. Interestingly, while
that happened, Bitcoin prices began to experience a bullish
movement. This bullish movement can be attributed to the panic of
traditional bankers seeing BTC as a bold alternative as major banks
continue to collapse. BTC Could Be Warming Up For Another Rally The
last time a similar banking crisis occurred in the US in March this
year, Bitcoin reacted positively to the news and tapped $30,000 for
the first time in nine months. And according to Bitcoin’s latest
price action, the asset seems to be affirming expected price action
based on past price action exposure to the banking crisis
news. In the last 24 hours, Bitcoin has recorded gains in its
value, surging 7.5% with a market price of $29,817. Over $30
billion has been added to its market capitalization in the same
period. Its trading volume has also surged indicating a buying
pressure. According to on-chain data provider Santiment,
Bitcoin’s social dominance has increased compared to other altcoins
in the market. Santiment noted this “happens during market euphoria
or (in this case) fear.” The data provider further noted, “Prices
can rebound quickly.” Related Reading: Bitcoin Price Reclaims
$29,800, Driven By These Factors Santiment is not the only one that
anticipated Bitcoin’s rebound from its previous bearish price
action. Popular crypto analyst Michael Van de Poppe stated: Bitcoin
isn’t looking bad on the higher timeframes. Healthy correction, and
as long as Bitcoin sustains above $25,300 it’s likely we’ll
continue this rally towards $42,000. According to the
analyst, as long as Bitcoin remains above $25,300, which it
currently is as the asset trades above $29,000, Bitcoin will enjoy
another rally to trade above $40,000. Featured image from iStock,
Chart from TradingView
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