Bitcoin (BTC) hit its highest since the beginning of the month on March 13 as US bank stocks saw the largest mass block in history.
BTC price sees a “phenomenal” rebound
Data from Cointelegraph Markets Pro and TradingView are tracking bullish hourly candles for BTC/USD, which reached $23,725 on Bitstamp.
The move was quickly anticipated by market participants, many of whom warned of extreme volatility at the opening of Wall Street.
45min into the US open, and banks are closing left, right and centre. At 4pm eastern Fed Funds can return at 0%. $XAU $ANGLE $BTC $ETH that’s the only way!
– Arthur Hayes (@CryptoHayes) March 13, 2023
This is the case, with Bitcoin and altcoins benefiting from the intense uncertainty surrounding bank stocks, especially when trading takes place.
The damage from the weekend failure of two US banks was felt more, not only at home but in Europe, where banks also suffered huge losses.
“Massive Bitcoin move. Now facing the next resistance zone (I can’t get $21.6K),” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading company Eight, react.
“The trend is again up, buying a dip in S/R flips seems to be a game. Resistance around $23.3-23.6K, if it stalls and consolidates -> altcoins should continue.”
Trader and Analyst Rekt Capital, while previously arguing that monthly candles need to close to confirm a long-term style break, however called the Bitcoin dip below $20,000 the week before “bear trap.”
“The way BTC has recovered in such a short period of time only shows that the drop to $20000 is a Bear Trap,” he said write in one of his many tweets as BTC/USD reached $23,500.
Further analysis called the uptick “phenomenal,” with 18% added over the local low since March 10.
Phenomenal #BTC rebound from Pi Cycle MA and Monthly Range Low support area$BTC has rallied +18% and is now trying to breakout from the Range
It’s been a crazy week in Crypto#Crypto #Bitcoin https://t.co/2bWKwPUlF2 pic.twitter.com/rrG0bsNita
— Rekt Capital (@rektcapital) March 13, 2023
“If $22.4k remains as the new floor, that’s all and more value should gain momentum for Key Resistance in the $24.1k-$25k range and actually break through,” trader G aah along.
“We could have more price explosions, watch out for that area.”
G aah links to a liquidity chart from Caue Oliveira, head of on-chain research and analysis at Brazilian crypto insights company BlockTrends.
Bank stocks tumble as contagion spreads to Europe
Outside of crypto, the picture is slowly improving for US stocks – with the exception of some banks.
Related: Fed begins ‘stealth QE’ – 5 things to know in Bitcoin this week
Some of the worst performers of the day included First Republic Bank, which lost 76% as trading halted after the opening bell.
Overall, as a businessman Brian Roemmele notedmore US bank stocks were halted than ever before in history.
First Republic fell more than 60% in US premarket trading as measures taken by US authorities to calm investor concerns failed to provide relief for the regional lender’s shares. (BBG) pic.twitter.com/Jf49izSvcu
— Holger Zschaepitz (@Schuldensuehner) March 13, 2023
In addition to rethinking the possibility of the Fed’s interest rate hike continuing on March 22, the market also reduce expectations that the European Central Bank (ECB) will raise 0.5% this week.
Among the European losers on the day was Credit Suisse (CS), which has fallen more than 7% to its latest at the time of writing.
“The problem for Credit Suisse (and others) is that it cannot cover the flight of deposits by borrowing in the money market. It can only go to the Swiss National Bank, in effect for a second bail out. Will the SNB play ball?” Alasdair Macleod, head of research for Goldmoney, inquire.
The views, thoughts and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.