Daily News | BTC Catalyst Search Amid Banking Crisis, Elon Musk's Twitter Exit, and Trust Challenges for BoE's "Britcoin"

Crypto Daily Digest: Investors Seek Catalyst Amid Banking Crisis, Ethereum Overcomes Disruption, BoE’s “Britcoin” Faces Trust Hurdles, and Elon Musk Steps Down as Twitter CEO

Bitcoin (BTC) recently experienced a decline below the $27,000 mark amidst a banking crisis, but unlike previous instances, this decline did not trigger a significant price surge. As a result, investors are now eagerly searching for a new catalyst that can potentially drive the price of Bitcoin.

In the crypto markets, short-term sentiment has become uncertain. Notably, short-term holders are currently sending their coins to exchanges, reflecting a bearish sentiment and a desire to liquidate their assets. Conversely, whales, referring to entities holding more than 1,000 BTC, are removing their coins from exchanges, suggesting a more bullish outlook for Bitcoin.

While Bitcoin faced its own challenges, the Ethereum mainnet also encountered a temporary disruption. However, this issue has since been resolved, allowing for the normal functioning of the Ethereum network.

Moving on to the banking sector, the Bank of England’s plan to introduce a digital pound, known as a central bank digital currency (CBDC), is facing various challenges. These challenges primarily revolve around issues of trust and financial stability risks associated with the implementation of a CBDC. The Bank of England and the Treasury are currently considering the launch of the CBDC project, referred to as “Britcoin.”

In popular news, Elon Musk, the billionaire owner of Twitter, has announced his decision to step down as the CEO of the platform. Instead, Musk will take on the roles of executive chair and chief technology officer. A new CEO, expected to be a woman, will be appointed within approximately six weeks. Musk’s acquisition of Twitter last year for $44 billion came with the intention to lead the company temporarily and implement necessary organizational changes. However, Musk has faced criticism for his abrupt policy changes and alleged neglect of his other businesses, such as Tesla and SpaceX. The incoming CEO of Twitter will have to address challenges such as declining revenue and the underperformance of services like the Twitter Blue sub_script_ion.

Bitcoin (BTC) $26974 (+0.01%) - Neutral Outlook

Given the recent volatility in the cryptocurrency market, it is crucial for us to reassess our previous analysis by referring to the higher timeframe chart. By examining the weekly timeframe, we can still confirm that BTC is following an upward trend, as long as the price remains above the range of 19315 to 17625, known as the automatic rally area or Creek zone. Another significant level to watch is the range of 21885 to 21040. If BTC falls below this range, it could indicate a bearish shift in the market sentiment.

On the 3-Day timeframe, the recent peak between 29885 and 31015 can be considered a buying climax. This serves as a reference point for analyzing lower timeframes. Typically, a buying climax is followed by a downward move known as the automatic rally or Ice zone. In this case, the Ice zone is estimated to be between 27265 and 26970. Once the Ice zone is reached, we can anticipate a secondary upward test, which is likely within the range of 29472 to 30025.

Looking ahead, it is important to anticipate areas where BTC may experience increased demand. This often coincides with a significant downward candle. Therefore, we should keep an eye on the range of 25240 to 24570 as a potential area of interest.

However, and this goes without saying, it is essential to approach all analyses with caution and not invest more than we can afford to lose. It is advisable to have stop-loss orders in place to protect against unexpected events, such as the collapse of Terra and FTX, which could have a profound impact on the market.

Macro: Global Stocks Fluctuate as US Economic Indicators Raise Concerns and Bank of England Raises Benchmark Rate; Safe Havens in High Demand

The global markets experienced a day of mixed performance, with some stocks showing gains while others declined. At the same time, Treasury bonds rallied as investors turned towards safe-haven assets amid concerns about the health of regional lenders and a cooling jobs market. The S&P 500 declined by 0.2% in response to jobs and inflation data, while the Nasdaq 100 managed to add 0.3% with support from Alphabet Inc.’s strong performance. This led to an increase in demand for haven assets such as the dollar and Treasury yields.

In line with these developments, the Bank of England raised its benchmark lending rate to the highest level in over a decade. The move was made to address the ongoing impact of inflationary pressures. Looking ahead, Asian stocks are expected to open with limited movement after a mixed session in the US. Hong Kong futures indicate gains, while Japanese and Australian futures remain stable. Investor sentiment remains cautious due to concerns about the US debt ceiling and the stability of the banking industry.

The recent reports on jobs and inflation data in the US have also raised concerns. Initial jobless claims in the US reached their highest level since October 2021, while producer prices rose slightly below expectations. These developments indicate that the Federal Reserve’s tightening campaign may be impacting inflation. As a result, the dollar strengthened, and Treasury yields decreased, reflecting heightened demand for safe-haven assets.

Meanwhile, commodity prices faced downward pressure due to negative economic indicators and concerns about China’s economic recovery. Despite this, Chinese stocks listed in the US saw gains following positive earnings reports from JD.com and diplomatic talks between the US and China. In a separate development, JPMorgan’s CEO, Jamie Dimon, called for addressing the bank crisis and predicted forthcoming regulations for lenders.