The most popular cryptocurrency, Bitcoin crossed the threshold of 20 days buyers’ hedge zone on Fridays amid the uncertainty of Silvergate Capital. In a matter of 60 min at the beginning of Fridays, buyers witnessed a nearly 5.4% price drop until the BTC price recorded March low at $21,971.
As per Coinglass, there were many long positions on Thursday before increasing volatility. Amid this sudden drop, nearly 78,000 traders were liquidated, and the total liquidation was around $237 million. Meanwhile, bears became aggressive as BTC slipped lower than $22K.
Source: Coinglass
Investors witnessed a nearly $22 billion loss in the market capitalization of Bitcoin, which stands at around $431.2 Billion as per CoinMarketCap.
The uncertainty surrounding Silvergate has led to a sharp drop in the price of Bitcoin. Silvergate share price was down 57% on Thursday because the company did not submit its annual report on time.
As a result, Coinbase, Poxos, Galaxy Digital, Gemini, BitStamp, and many more crypto firms are cutting their ties with Crypto-Friendly Bank Silvergate.
Source: Tradingview
Minor consolidation brought the opportunity for market bears this week. Investors got disappointed due to the bad monthly beginning. The price action has displayed lower lows since mid-February, and if buyers fail to maintain the next hedge zone, then this price pattern could turn into continued selling.
At the time of writing, the Bitcoin price against the USDT trades at $22390, along with little stability in the market. However, a 30% overnight increase in trading volume refers to aggressive selling through bears.
Meanwhile, the Bitcoin price pulled back below 20 and 50 days daily exponential moving averages. In addition, the daily RSI also reaches the oversold zone.
As Cryptotimes mentioned prior, “$25,000 is a psychological level and can act as a resistance, so it would be difficult to break that level.” Thus, the next support closer to $21,500 remains the last hope for investors to save themselves from another dip.
