“Banking Sector Decline Boosts Bitcoin Price: Analysis and Insights”

Banks fall, Bitcoin rises – This is the observation that we can make for several months: the banks are plummeting, and Bitcoin is rising. After the Silicon Valley Bank and the First Republic Bank, it is the turn of the PacWest Bancorp and the Western Alliance Bank to fall heavily. At the same time, the price of Bitcoin took the opportunity to rise, it is currently evolving around $28,500. Did MicroStrategy make a winning bet?

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Bitcoin price climbs 2% in 24 hours

As Bitcoin price moved below 28 000 $, the fall of PacWest Bancorp and Western Alliance Bank woke up BTC. Indeed, thee Bitcoin climbs 2% in 24 hours :

The volatility continues to be present on the financial markets, the price of Bitcoin now shows a 5% increase in one week. In six months, the price of Bitcoin is in 40% increase. BTC continues toattract capitalthe BTC/ETH pair climbs more than 2 % In a week.

Can the Bitcoin price benefit from the next FED meeting?

Tomorrow, the FED (Federal Reserve of the United States) meets to decide on the next rate hike. This will not be an easy task, because it is necessary fight inflation by avoiding a plunge in the banking sector which is already showing signs of fragility. Financial markets are valuing 94.2% probability of a 25 basis point hike :

If J. Powell and his colleagues decide to raise the rates of 25 basis points, the market should not be surprised, and the trend could continue on the side of cryptocurrencies. It will be necessary to listen carefully to the speech of J. Powell, because he will probably give indications concerning the next meetings. Whatever happens, there may be volatility ahead of the FED meeting.

Bitcoin price rebounds, buyers react around $27,700

Bitcoin once again reacted around the rack at $27,500. Buyers have to push to break the bearish trendline :

Bitcoin is not out of the woods yet. If the price manages to break the bearish trendlinehe could join the resistance at $30,500. A close above the last high at 30 000 $ would allow the course of the BTC to revive the bullish momentum.

The RSI bounces off the level of the bearish trendline. We should again see momentum with bottoms and bottoms rising.

For several months, the banking sector has been fragile, as we can see once again with PacWest Bancorp and Western Alliance Bank. When the banking industry falters, BTC takes the opportunity to rally, positioning itself as a decentralized alternative. The price is likely to experience volatility during the FED meeting tomorrow. Whatever happens, Bitcoin needs to grow above $30,000 to regain bullish momentum.

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