Cryptocurrency market experts believe bitcoin is in the early stages of a parabolic rally, closely copying the behavior of the asset in the 2015 bull market.</div
The ongoing banking crisis in the U.S., as well as liquidity and insolvency problems have prompted U.S. investors to seek an adequate replacement for traditional financial instruments.
Some of them began to look for protection in instruments on the cryptocurrency market.
The massive withdrawal of funds from Silicon Valley Bank and the spread of panic to customers of other U.S. banks in early March led to a 40% increase in bitcoin (BTC) in just a few days.
Similarly, First Republic Bank’s April run on more than $100 million in deposits and a nearly 50% plunge in the bank’s stock reversed the downward trend in the first-capitalized cryptocurrency;
The market value of VTC is now up nearly $1,000 to $28,448 and is retesting the $28,000 support line.
In analyzing the dynamics of the exchange rate, a cryptocurrency market observer under the pseudonym TechDev pointed out that bitcoin behavior very closely mimics the situation in the bull market of 2015 – a cycle in which BTC rose from less than $200 to $20,000 in two years.
Bitcoin overcame the diagonal resistance that supported the bearish 2022 VTC rate and retested it as support.
According to TechDev’s findings, the charts show similarities in the movements of two technical indicators:
the Relative Strength Index (RSI), which is a momentum indicator, and the Moving Average Convergence-Divergence (MACD), a trend-following indicator.
Earlier, analysts at financial firm Standard Chartered said the value of bitcoin could jump to $100,000 by the end of 2024.
As stress in the traditional banking sector greatly contributes to the popularity of BTC as a “decentralized digital asset.”