There are only ten days left until March, and volatility in the crypto markets has increased, with bitcoin and ethereum falling to two-month lows. A collapse at Silvergate Bank was one of the main catalysts leading to this month’s bearish sentiment, which now sees Bitcoin trading below $20,000. With more than three weeks left in March, what could be next?
Current state of the market
Non-Farm Payrolls in the US were released today coming in at 311,000, better than the 205,000 expected, however this has been of little consequence, unlike in previous months.
This is due to the collapse of two banks, first Silvergate and then Silicon Valley Bank, which have ceased operations.
The fallout from this, particularly from crypto lender Silvergate, has spooked markets in recent days, after it failed to provide its annual report to the Securities and Exchange Commission (SEC).
Adding to this, Federal Reserve Chairman Jerome Powell has hinted that interest rates could rise more than initially expected as the battle against inflation continues.
March Outlook
All these factors have contributed to the red wave of this month, which has appeared mainly in the first days of March.
Earlier in today’s session, BTC/USD fell to a low of $19,628.25, which is its weakest point since January 13.
The move came after a breakout of a key price low at $20,300, with the bulls attempting to push the price back to this level.
In the larger scheme of things, liquidation means that BTC it is now severely oversold, with its 14-day RSI tracking at 27.22.
This is the weakest reading for the index since November and in the longer term it is positive for bulls as it indicates that the bottom is close, if not yet.
If this were the case, bitcoin could gradually recover in the coming weeks, following a period of consolidation, which could follow the next Fed interest rate decision.
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Where will the bitcoin month end? Let us know your thoughts in the comments section below.
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