{"id":11757,"date":"2023-05-01T09:25:10","date_gmt":"2023-05-01T09:25:10","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=11757"},"modified":"2023-05-01T09:25:11","modified_gmt":"2023-05-01T09:25:11","slug":"2nd-biggest-us-bank-failure-5-things-to-know-in-bitcoin-this-week","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=11757","title":{"rendered":"2nd biggest US bank failure \u2014 5 things to know in Bitcoin this week"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) starts a new week digesting major macroeconomic news as the United States sees the second-largest bank failure in its history.<\/p>\n<p>After a sideways weekend, BTC\/USD was already volatile into the new weekly and monthly candle as downside kicked in.<\/p>\n<p>After steadying below $29,000, BTC price action is already facing more potential pressure as First Republic Bank is placed in public receivership and taken over by JPMorgan Chase.<\/p>\n<p>The move, announced during Asia trading but before the Wall Street open, precedes an already heavy week in which the Federal Reserve will reveal its next interest rate shift.<\/p>\n<p>With a lot to take in, the potential for continued surprises on crypto markets is clearly in evidence.<\/p>\n<p>Cointelegraph takes a look at these risks and more in the weekly rundown of crypto, and specifically Bitcoin, price triggers.<\/p>\n<h2>BTC price volatility upends flat monthly close<\/h2>\n<p>Classic flash volatility accompanied Bitcoin\u2019s segue into a new weekly and monthly candle after April finished sideways.<\/p>\n<p><em>BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/p>\n<p>After closing out the month at $29,300, BTC\/USD swiftly dived lower as bid liquidity was pulled from the Binance order book.<\/p>\n<p>This, monitoring resource Material Indicators noted, was responsible for delivering the overnight local lows of $28,289 on Bitstamp, as tracked by data from Cointelegraph Markets Pro and TradingView.<\/p>\n<p lang=\"en\" dir=\"ltr\">#FireCharts 2.0 (beta) shows that when $29,150 was getting filled the bid ladder below was pulled and moved lower. #BTC price action sliced through the freshly open hole of illiquidity like a hot knife through butter.  <\/p>\n<p>Seeing these moves play out in near realtime is a great way\u2026 pic.twitter.com\/CnvRLRNcwc<\/p>\n<p>\u2014 Material Indicators (@MI_Algos) May 1, 2023<\/p>\n<p>Bitcoin thus reached \u201cbounce\u201d targets for some, including Micha\u00ebl van de Poppe, founder and CEO of trading firm Eight, who noted potential strength on altcoin markets returning.<\/p>\n<p>\u201cBitcoin didn&#8217;t hold $29,200 after multiple tests. Reached $28,300 for a bounce play. Good part; Altcoins are bouncing more firmly,\u201d he summarized on the day.<\/p>\n<p>The day prior, Van de Poppe had warned that without a reclaim of $30,000, Bitcoin would not be able to continue its uptrend, while correctly predicting the eventual reversal level.<\/p>\n<p lang=\"en\" dir=\"ltr\">Standard chop on #Bitcoin in the weekend.<\/p>\n<p>No breakout above $30K = no trigger for continuation.<br \/>Holding above $29.2K, and still facing a potential correction to $28.3K as the ideal trigger for new longs. pic.twitter.com\/3GJY8wImR9<\/p>\n<p>\u2014 Micha\u00ebl van de Poppe (@CryptoMichNL) April 30, 2023<\/p>\n<p>Popular trader Crypto Tony meanwhile confirmed that he was waiting for $28,300 support to prove itself before taking a position.<\/p>\n<p lang=\"en\" dir=\"ltr\">$BTC \/ $USD &#8211; Update <\/p>\n<p>Still not in a position yet, but looking here at the current support level we are on around $28,300. If we can maintain this level and hold, well this would be an entry for me on a long scalp <\/p>\n<p>Will need to see a few 4 hour candles to demonstrate demand pic.twitter.com\/zCKnl1vxw3<\/p>\n<p>\u2014 Crypto Tony (@CryptoTony__) May 1, 2023<\/p>\n<p>The same level was also important for other traders, including Ninja, while Sun Tzu agreed that without a clear break into the $30,000 zone, the odds for extended downside remain.<\/p>\n<p>\u201cWe are still ranging within this important resistance zone,\u201d he told Twitter followers on May 1. <\/p>\n<p>\u201cAs always, never assume a resistance is going to be broken until it happens, as the risk reward ratio for longs are quite low. The plan still remains the same, unless we break $31,000.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">Still long bias for a bounce, added on the stop hunt.<\/p>\n<p>If we start closing below $28.3k, I will cut and long somewhere sub $28k for a bounce<\/p>\n<p>above $28.6k &amp; bulls should be good for higher, if we keep stalling there&#8230; not good &amp; likely cutting$BTC https:\/\/t.co\/QFJzLzqveT pic.twitter.com\/TYS7eGKxAF<\/p>\n<p>\u2014 Ninja (@Ninjascalp) May 1, 2023<\/p>\n<h2>JPMorgan takes over First Republic Bank in 2nd biggest U.S. bank failure<\/h2>\n<p>In strong contrast to last week, macroeconomic events will take center stage in the coming days as the Federal Reserve meets to decide on interest rate changes.<\/p>\n<p>Despite being heavily priced in by markets, the forthcoming 0.25% hike, to be announced at the May 3 meeting of the Federal Open Market Committee (FOMC), is still not guaranteed.<\/p>\n<p>The picture remains complex. The Fed is hiking into increasing signs of an inbound recession, while a more pressing danger comes in the form of the lingering banking crisis from March.<\/p>\n<p>As of May 1, First Republic Bank (FRC), shares of which plunged 75% in April alone, is being placed under public receivership by the U.S. Federal Deposit Insurance Corporation (FDIC). Lenders including PNC Financial Services Group, JPMorgan Chase &amp; Co. and Citizens Financial Group Inc. were among the banks bidding for FRC, with JPMorgan ultimately taking over.<\/p>\n<p>Reports previously indicated that the deal should have been completed and announced before the start of Asia trading, but this took longer, being announced at approximately 8am UTC.<\/p>\n<p lang=\"en\" dir=\"ltr\">First Republic seized by California regulator, JPMorgan to assume all deposits. First Republic is 2nd largest Bank Failure in US history. FDIC estimates a $13bn loss to deposit insurance fund. First Republic&#8217;s 84 offices to reopen on Mon as JPMorgan Chase. https:\/\/t.co\/QBKxbAj76M pic.twitter.com\/zqlPRFcGUg<\/p>\n<p>\u2014 Holger Zschaepitz (@Schuldensuehner) May 1, 2023<\/p>\n<p>As a sense of expectation hangs in the air, attention is focusing on the Fed, which risks unsettling the banking sector even more with a further rate hike under current circumstances.<\/p>\n<p>As Arthur Hayes, former CEO of crypto trading giant BitMEX, warned late last month, the U.S. may be caught between a rock and a hard place.<\/p>\n<p>\u201cLook for the Fed to fix that issue by backstopping a larger slice of US bank balance sheets. Money printer go brrr,\u201d part of Twitter activity read on April 29, with Hayes repeating a now-familiar $1 million long-term BTC price target.<\/p>\n<p>Bets on the Fed following through with the expected raise increased on the FRC news, markets seeing an 90% chance of 0.25%, according to data from CME Group\u2019s FedWatch Tool.<\/p>\n<p><em>Fed target rate probabilities chart. Source: CME Group<\/em><\/p>\n<p>For Bitcoin traders, meanwhile, the FOMC event in itself marks a potential price turning point.<\/p>\n<p>\u201cSeems like Bitcoin once again became stablecoin, this time around 29200$. Obviously due to the weekend but I think it&#8217;s gonna stay relatively stable this way until Wednesday,\u201d popular trader Jackis predicted prior to the monthly close.<\/p>\n<p>\u201cOn Wednesday we have the FOMC meeting, highly anticipated event which is gonna be the perfect impulse.\u201d<\/p>\n<p>FOMC days tend to spark volatility across crypto markets, albeit often brief and characteristic of a \u201cfakeout\u201d as bid and ask liquidity is taken before prices return to prior levels.<\/p>\n<h2>April still beats February Bitcoin price performance<\/h2>\n<p>Despite current cold feet over BTC price strength, April managed to avoid receiving the title of worst month of 2023. <\/p>\n<p>Data from monitoring resource Coinglass shows overall returns for BTC\/USD totaled 2.8%.<\/p>\n<p><em>Bitcoin monthly returns chart (screenshot). Source: Coinglass<\/em><\/p>\n<p>These beat February, which returned no considerable gains at all, while preserving Bitcoin\u2019s \u201cgreen\u201d record for the year so far.<\/p>\n<p>On weekly timeframes, however, the picture looks less appetizing, with consolidatory weekly candles underscoring the stubborn nature of $30,000 resistance.<\/p>\n<p><em>BTC\/USD 1-week candle chart (Bitstamp). Source: TradingView<\/em><\/p>\n<p>Some remained optimistic, with popular Twitter account Mickybull Crypto dismissing weekend price action as a standard chart feature. <\/p>\n<p>\u201cThis price action happens most weekends. Note: one key to proper T.A is being able to identify what happened, what&#8217;s happening and what is likely to happen,\u201d part of a tweet read on May 1. <\/p>\n<p>\u201cMeanwhile BTC weekly and monthly candle close is bullish.\u201d<em>BTC\/USD annotated chart. Source: Mickybull Crypto\/Twitter<\/em><\/p>\n<h2>On-chain transactions challenge records<\/h2>\n<p>Under the hood, on-chain activity tells a compelling story of Bitcoin growth during its 2023 comeback. <\/p>\n<p>Recorded by on-chain analytics firm Glassnode among others, the daily transaction count for Bitcoin is approaching all-time highs after this year saw an \u201cexplosive\u201d increase.<\/p>\n<p><em>Bitcoin transaction count momentum annotated chart. Source: Glassnode\/ Twitter<\/em><\/p>\n<p>In a Twitter thread investigating the overall strength of the BTC price uptrend, Glassnode acknowledged that on-chain volume had yet to match it.<\/p>\n<p>\u201cBitcoin transaction counts, address activity, Inscriptions, and Mempool congestion are all elevated. As is the degree of HODLing, and supply acquired below $30k,\u201d it commented. <\/p>\n<p>\u201cConviction remains. However, the uptrend remains young, and on-chain volumes have not picked up in support&#8230;yet.\u201d<\/p>\n<p>An accompanying chart showed unspent realized price distributed of various market cohorts.<\/p>\n<p><em>Bitcoin entity-adjusted unspent realized price distribution chart. Source: Glassnode\/ Twitter<\/em><\/p>\n<p>Continuing, Glassnode lead on-chain analyst Checkmate remained upbeat on Bitcoin continuing its rally and the late-2022 lows marking a local bottom.<\/p>\n<p>\u201cBest Estimate &#8211;&gt; Uptrend justified, and floor most likely in,\u201d he wrote, summarizing the latest research. <\/p>\n<p>\u201cBut new capital inflows are limited, and remain dominated by the existing holder base. Thus, expect a choppy road, where traders have growing influence on low timeframes and liquidity. Probably a macro hated disbelief rally, which also carries out plenty of lettuce handed bulls along the way.\u201d<\/p>\n<h2>Crypto market greed flipflops near multi-year highs<\/h2>\n<p>While price has been wavering, crypto market sentiment has been creeping higher after a drop in late April.<\/p>\n<p><strong><em>Related:\u00a0Bitcoin price can \u2018easily\u2019 hit $20K in next 4 months \u2014 Philip Swift<\/em><\/strong><\/p>\n<p>The latest readings from the Crypto Fear &amp; Greed Index show that market \u201cgreed\u201d is trending back toward levels last seen at Bitcoin\u2019s $69,000 all-time highs in November 2021.<\/p>\n<p>A lagging indicator, Fear &amp; Greed nonetheless shows the ease with which sentiment is currently being influenced by comparatively small market shifts.<\/p>\n<p>This in turn reiterates the importance of current resistance levels for Bitcoin and Ethereum in particular, with both assets facing key lines in the sand \u2014 $30,000 and $2,000, respectively.<\/p>\n<p><em>Fear &amp; Greed Index (screenshot). Source: Alternative.me<\/em><\/p>\n<p><strong><em>Magazine: Whatever happened to EOS? Community shoots for unlikely comeback<\/em><\/strong><\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/2nd-biggest-us-bank-failure-5-things-to-know-in-bitcoin-this-week\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) starts a new week digesting major macroeconomic news as the United States sees the second-largest bank failure in its history. After a sideways weekend, BTC\/USD was already volatile into the new weekly and monthly candle as downside kicked in. After steadying below $29,000, BTC price action is already facing more potential pressure as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11758,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-11757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11757"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11757\/revisions"}],"predecessor-version":[{"id":11759,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11757\/revisions\/11759"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/11758"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}