As Bitcoin inches closer to the $30,000 resistance level, investors and traders eagerly anticipate its next move. In this Bitcoin price prediction, we will explore various price predictions and analyze the factors that could influence its trajectory.
Will BTC break through this significant barrier and continue its upward trend, or will it face a pullback? Let’s dive into the possible scenarios and targets for the world’s largest cryptocurrency by market cap.
First Republic Sparks Second Wave of Banking Crisis Underpins BTC
Bitcoin’s value is gearing up for a surge to $35,000 as a new wave of banking crisis strains the Federal Reserve’s balance sheet. According to an April 29 Wall Street Journal report, the US government may place First Republic Bank under FDIC receivership this weekend.
However, First Republic Bank is not the only one in danger, as 4-5 banks are currently experiencing bank deposit withdrawals in the billions. The Fed will need to print more money to save these struggling banks from collapsing.
As the Wall Street Journal reported, First Republic Bank is expected to be placed under FDIC receivership this weekend. Banks such as JPMorgan Chase & Co and PNC Financial Services are preparing to acquire it after the government closure.
First Republic’s shares have plummeted over 75% since Monday, closing at $3.51 on Friday and dropping to $2.33 after hours. Wall Street insiders suggest that more banks may fail in the coming months.
Despite JPMorgan and PNC’s efforts to provide a $30 billion deposit in March, First Republic Bank couldn’t prevent continuous deposit withdrawals.
Impact on Bitcoin Price: Market Uncertainty and Rising Demand
The collapse of First Republic Bank and the potential failures of other banks could significantly impact the cryptocurrency market, particularly Bitcoin (BTC). As the traditional financial system faces instability, investors may seek refuge in alternative assets like cryptocurrencies.
This shift in sentiment could drive up the demand for Bitcoin, leading to an increase in its price. Furthermore, as people lose faith in the banking system, they may turn to decentralized financial solutions, further boosting the adoption and value of Bitcoin and other cryptocurrencies.
The current live price of Bitcoin stands at $29,323, with a 24-hour trading volume of $15 billion. Over the past day, Bitcoin has experienced a 0.50% increase. It holds the #1 position on CoinMarketCap, boasting a live market cap of $567 billion. Presently, there are 19,359,125 BTC coins in circulation, with a maximum supply of 21,000,000 BTC coins.
From a technical perspective, Bitcoin faces immediate resistance around the $30,000 mark, which also acts as a psychological barrier. On the other hand, strong support is present near the $29,000 level. In the two-hour timeframe, a descending trendline intersects with the upward trajectory of Bitcoin.
The particular trendline presents significant resistance near the $29,600 level. However, key technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both in the buy zone, supporting the probability of a sustained bullish trend.
Simultaneously, the 50-day Exponential Moving Average (EMA) is positioned around the $29,100 level, suggesting a potential upward trend for Bitcoin.
If Bitcoin can break through the $30,000 resistance level, it might aim for the $30,400 or $30,800 resistance levels. On the other hand, if BTC falls below the $29,100 level, it could target the $28,800 or $28,200 levels.
This article was originally published by CryptoNews.