- Bitcoin price outlook after this week’s Silvergate and Tether news.
- BTC is currently hovering at $22,400 with key resistance close to $23k, amid a possible technical breakout towards YTD highs.
- Bulls must reach $20k to be considered a psychologically important level.
The Bitcoin price has remained below $22,500 despite a sharp drop on Friday due to a combination negative news and market weakness.
The technical outlook for bulls suggests that they may still be able to push for new year’s highs in March and April with the price at $22,000.
Prediction: Bitcoin price declines amid Silvergate Bank news and Tether news
The crypto-friendly bank Silvergate (SI), revealed that it was in deeper trouble after a SEC filing that it would delay the release of its financial report. After the previously disclosed $1 billion loss, the crypto-friendly bank Silvergate (SI) announced a halting of its Silvergate Exchange Network payments network (SEN), causing more uncertainty around its operations.
As major crypto firms such as Coinbase, Paxos and Paxos announced their switch from Silvergate banking partners to other banks partners, the selling pressure on BTC increased.
But the price of bitcoin went on to touch lows of $22,000 as more negative news emerged – the Wall Street Journal published an article related to Tether, the company that issues the world’s largest stablecoin USDT. Allegedly, Tether and Bitfinex used “falsified documents” to acquire banks accounts amid questions over the stablecoin’s reserves.
Crypto trader and investor Scott Melker heighted the WSJ’s report in a Twitter thread on Friday.
The report’s allegations could have major implications for Tether, and the wider cryptocurrency market. It could lead to a decline in the cryptocurrency’s value if Tether’s dollar reserves don’t match what is claimed.
— The Wolf Of All Streets (@scottmelker) March 3, 2023
Bitcoin price outlook: What is next for BTC/USD
Because price action consists mainly doji prints, the RSI remains largely flattened on the 4-hour chart. While Bitcoin is holding above a support base formed in early January, there’s indecision as signaled by the doji candlesticks.
The 4-hour chart shows the Bitcoin price movements. Source: TradingView
BTC/USD could retest the support line if bears continue to take control. This would allow BTC/USD to potentially surpass $22k and reach another critical level close $21,600. Below that, we might see a retest at the $20k level.
The immediate obstacle is the $22.5k area. Strong supply areas are expected at the current price levels indicated by the 200 and 50 moving averages.
The outlook on the daily charts shows that the RSI slopes to suggest that bears might have the upper hand.
However, there’s potential formation of an inverse head & shoulders pattern. This inverse H&S pattern may have a neckline in the $25k area. The 50-day and 200 day moving averages are near $22,900 and $19,712 respectively.
Source: TradingView
CoinJournal published the post Bitcoin price prediction – BTC outlook after Silvergate news and Tether news.
