The price of Bitcoin has been very volatile in recent days due to the uncertainty surrounding Tether, the world’s largest stablecoin. Tether faced legal challenges that led to fear, uncertainty and doubt in the cryptocurrency market, causing BTC to fall to the $22,000 level.
Meanwhile, several well-known cryptocurrencies, including Litecoin (LTC) and Dogecoin (DOGE), also saw minor price declines.
The recent decline in the crypto market can be attributed to the release of US manufacturing data and concerns about the availability of banking services for crypto companies in the US.
In this article, we will look at the current state of the cryptocurrency market and predict the price of Bitcoin for the coming days.
Uncertainty in Silvergate, cryptocurrency weakening
After the market closed on Wednesday, Silvergate filed a report with the Securities and Exchange Commission (SEC), announcing a delay in filing its annual report as it evaluates the impact of several developments on its operations.
As a result, the value of cryptocurrencies, including Bitcoin, has plummeted and is showing mixed signals. It is worth noting that the Silvergate event had a significant impact on the value of cryptocurrencies.
Notably, Silvergate Capital ( SI ) announced Wednesday night that it is delaying its annual report due to losses from the fall in FTX in November and several regulatory reviews.
As a result, this had a negative impact on market sentiment, causing investors and traders to lose faith in the stability and security of the crypto industry, which could lead to a widespread sell-off in the market.
Moreover, the backlash Silvergate Capital faced led to increased regulatory scrutiny of the cryptocurrency industry, making authorities hesitant to issue licenses to cryptocurrency-related companies. This could potentially limit the growth and expansion of the industry.
Avoiding risk in the Bitcoin market
The global cryptocurrency market is poised to end the week on a bearish note due to a number of factors. The release of robust US economic data has fueled speculation that the Federal Reserve may take more aggressive action to combat persistent inflation by raising interest rates.
Investors and traders are closely monitoring economic indicators in preparation for possible rate hikes and inflation. With the economy performing well and inflationary pressures still present, it is likely that the Federal Reserve will raise its key rate to a level higher than expected at the end of last year.
Bitcoin price
Bitcoin is currently priced at $22,357 with a 24-hour trading volume of $18.5 billion, showing a 0.25% drop in the last 24 hours. Similarly, Ethereum is trading at $1,570 with a 24-hour trading volume of $6.7 billion and is down 0.15% in the last 24 hours.
According to technical analysis, the BTC/USD pair may break the symmetric triangle at $23,250. In such a scenario, the price of BTC may find itself in the support zone of $22,046. A further break below this support zone could see BTC fall to $21,450.
In addition, the presence of a bearish absorbing candle indicates strong biased selling. However, if the candles close above this level, a bullish bounce targeting $22,800 or higher towards the $23,750 mark could occur.
