Crypto Market Analytics March 3rd | Dex-Trade
The main “surprise” of the outgoing week in the crypto market was an unexpected and sharp bearish boost, which affected the prices of all coins from the TOP-10 list on CoinMarketCap. Why did this happen? A number of analysts believe that the key fundamental factor that influenced at least the price of BTC was the distressed cryptocurrency bank Silvergate. During the second half of 2022, the company's management actively fought against the approaching bankruptcy, however, after the delay in the release of the bank's annual report and the involvement of auditors, Coinbase, Bitstamp, Galaxy Digital and several other crypto companies refused his services. This caused Silvergate (SI) stock to plummet 57% almost instantly, hitting an all-time low. And then there was a chain of “aftershocks”: concerns about the safety of assets caused a wave of sales of BTC, and the fall in the price of the flagship forced bullish leverage out of the futures market.
As a result, today around 2:00 AM ET on the Bitstamp exchange, the price of bitcoin fell to an intraday low of around $22,000, the lowest price in the last two weeks. What price changes can be expected amid growing fear among investors? We will talk about this in detail.
-5% per Hour: What to Expect Next from BTC
The fall in the price of the flagship within an hour reduced its capitalization by about $22 billion, and now it fluctuates around $434 billion. But analysts consider the breakthrough of powerful support around $23,000 to be the most important event. Obviously, bears will now actively fight for this level. At the time of writing, the flagship is trading around $22,400 with a daily downfall of 4%. At the same time, within a few hours, the liquidation of long BTC positions reached a value of $72.9 million, and cross-crypto liquidations amounted to $205 million. Judging by most technical indicators, the flagship asset is now at a monthly low.
Despite the relatively quick recovery of the RSI, buyers are still in a "shock state", which means that activity and, accordingly, trading volume will not increase in the coming hours. Most likely, the trading week will end with a big question mark, and it will be possible to talk about a recovery above $23,000 only on Monday. But do not forget that for many systemic institutions, the scale of MicroStrategy, the current cost of BTC remains extremely attractive, so large purchases, sooner or later, will activate the bullish momentum. However, it is too early to speak about its goals and actual effectiveness.
SOL Consolidating in Anticipation of a Reversal?
SOL continued to consolidate near local highs, showing that buyers are not leaving yet. Despite network outages last week, the price of the coin did not fall below the support level in the $20 region. At the same time, a retest of the $23 area is still very real, so the current price indicator remains very attractive to buyers. However, over the past 24 hours, over $800,000 worth of long SOL positions have been liquidated in the last 24 hours, and the liquidation of short positions has resulted in a loss of approximately $100,000, according to Coinalyze data. This added to the bearish sentiment and prompted sellers to step up. Although, the bulls are also actively waiting for a return to the $20 level in order to activate buying.
On the daily chart, we see that the RSI has fallen below 50, which indicates the dominance of bearish sentiment. Similarly, OBV (on-balance volume) is symmetrically and smoothly declining, indicating limited buying pressure, which could tip the balance further in favor of the bears. That is, sellers can push SOL to $20, and a retest of this level can open up new buying opportunities. The "cherished" goal of the bulls in this case will be the level of $27. If they break the selling pressure zone at this level, SOL could come close to the resistance around $30.60.
Why is MKR Growing Contrary to the Market Trend?
Daily growth of MKR at the time of writing was 1.16%, however, during the week the asset has risen in price by a whopping 22.43%, with the current market downturn having almost no effect on the coin’s growth dynamics. She quickly recovered and continues to move north. At the time of writing, MKR is trading at $915 after a massive daily wave of short liquidations. As a result of these actions, price action traders liquidated almost $444,000, while liquidating long positions did not exceed a modest $27,000.
It is noteworthy that according to the ratio of market value to realized (MVRV), MKR has been revalued since the beginning of 2023. However, the total value locked by the coin issuer reflects a favorable price trend. The same can be said about the imminent crossing of the MA50 by the protracted MA200. From a technical point of view, the asset has strong upside potential that could materialize in the coming weeks.
