Bitcoin
The sentiment in the world of cryptocurrency is changing rapidly. Just a week ago, many believed that the market had entered another period of decline, but recent events have altered this trend.
Despite some minor setbacks, Bitcoin has seen a 28% increase in value from March 10 to 17, reaching a price of $26,038.
Source: tradingview.com
While the cryptocurrency briefly dipped on March 15, it quickly bounced back, reaching a nine-month high of $26,533 the following day.
So what is driving this sudden growth? It appears that the troubles facing several US banks, including Silvergate Bank, Silicon Valley Bank, and Signature Bank, have prompted investors to seek safer havens for their money.
Bitcoin has emerged as an attractive option, as it allows individuals to both save and multiply their money.
While some investment firms remain skeptical of the long-term viability of Bitcoin, smaller investors and individual players have been increasing their positions in the cryptocurrency.
Despite this positive momentum, not everyone is convinced of Bitcoin’s potential. Some, like economist Peter Schiff and Mad MoneyGram host Jim Cramer, have called for selling off the cryptocurrency.
However, others, such as Robert Kiyosaki, author of “Rich Dad Poor Dad,” have advised buying Bitcoin and waiting for a potential crisis. From a technical perspective, Bitcoin is currently in a bullish trend, with the $25,200 level now serving as support and the $26,533 level acting as resistance.
While the fear and greed index for the week has risen to a neutral level, the mood in the cryptocurrency market remains unpredictable.
However, recent events suggest that Bitcoin may continue to gain ground as a safe haven for investors in the face of economic uncertainty.
Source: tradingview.com
Ethereum
Over the last week, Ethereum has experienced a more moderate increase in comparison to Bitcoin, with its value rising by about 21%.
The patterns observed in the performance of the second-largest cryptocurrency by market capitalization are quite similar to those of BTC, with six days of steady growth, followed by a decline of 2.81% on Wednesday, March 15.
On Sunday, March 12, when the news of Signature Bank’s closure was announced, Ethereum saw its highest growth rate of over 7%.
Source: tradingview.com
The overall rise of Ethereum can be attributed to the same banking crisis that fueled Bitcoin’s recent surge.
Otherwise, the cryptocurrency created by Vitalik Buterin is proceeding with business as usual, focusing on the upcoming Shanghai hard fork, with preparations continuing apace.
During the week, the update underwent testing on the Goerli network, with the implementation date finally confirmed as Sunday, April 12th.
However, ongoing applications for recognition as a security are causing some tension for Ethereum investors, with SEC head Gary Gensler insisting that all cryptocurrencies that use the Proof-of-Stake (PoS) consensus algorithm should be regulated as securities.
Ethereum has recently been utilizing the PoS system, so this news is particularly significant for its investors.
Despite these concerns, the technical picture of the cryptocurrency market remains bullish overall, with Ethereum also benefiting from the trend.
The next crucial milestone for Ethereum is to break through the resistance level of approximately $1,790, while the support level remains at approximately $1,615.
Source: tradingview.com
Avalnche
Over the past week, the value of Avalanche’s AVAX token has increased by over 12%, rising from $14.89 to $16.76.
On Tuesday, March 14, the price reached a high of $17.96, but experienced a sharp decline of almost 8.5% on Wednesday, March 15.
While the primary reason for the positive momentum in Avalanche is the same as for Bitcoin and Ethereum – the collapse of American banks – the growth of this altcoin has been less significant, as investors seek out safe havens for their assets.
AVAX is a highly volatile asset, and this has contributed to the relative caution of investors towards it.
Source: tradingview.com
The leadership of Ava Labs, the primary developer of the Avalanche blockchain, is also responding to the current situation in the United States by looking towards Asia.
Two new specialists were hired in a short period to conduct business in Japan and South Korea.
The Japanese division will be headed by Roi Hirata, who has experience in several start-ups, while the South Korean division will be led by former Korean Development Bank employee Justin Kim.
This move may be due to the lack of banking structures in America that are friendly towards cryptocurrency enthusiasts, while a more favorable environment is emerging in Asia.
From a technical analysis standpoint, for the upward momentum of AVAX to continue, it will be necessary to break through the resistance level in the region of $18 – the highest point of the past week.
Source: tradingview.com
The support level remains around $14.3, which successfully held up on March 10th.
Overall, it can be said that the significant issues facing banks in the United States have played a major role in fueling the current cryptocurrency boom, with Bitcoin showing the greatest growth.