BTC, ETH trading flat after returning support

by James · March 6, 2023

Table of Contents

Bitcoin (BTC), Ethereum (ETH) Forecast:

BTC/USD Prices Stabilize After Falling Below 20-Day MA (Moving Average)
Ethereum finds temporary support above $1,550 as bulls’ eye $1,600.
Silvergate becomes the latest cryptocurrency firm to find itself in troubled waters. The digital asset-based bank falls victim to FTX contagion.

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Bitcoin and Ethereum prices have stabilized after Friday’s drop that occurred due to growing fears about crypto-based bank Silvergate. After announcing a 40% reduction in its workforce, the firm announced a “risk-based” decision to wind down the Exchange Network.

Like Coinbase, Galaxy Digital and Bitstamp responded to the viability concerns by suspending payments and withdrawals through the Silvergate payment network.

The combination of negative sentiment and rising interest rate expectations weighed on digital assets, pushing BTC below the $20-day MA (moving average) which now holds as resistance around $23,600. With prices extending declines into the weekend, a rebound from the psychological $22,000 level helped limit losses.

As the largest digital asset (in terms of market cap) returned to a narrow range of support and resistance, Ethereum fell below $1,600 before finding support at $1,550.

Bitcoin (BTC/USD) Technical Analysis

While today’s price action has been muted, 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 leave BTC/USD vulnerable to a sharper pullback.

Bitcoin (BTC/USD) Daily Chart

Chart prepared by Tammy DaCosta using TradingView

Below this level is the February low which could open the door for bearish continuation towards $20,000.

Ethereum (ETH/USD) Technical Analysis

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