According to crypto analyst Michaël van de Poppe, the $23,800 price zone is a “critical breaker” for Bitcoin (BTC) to sustain a bullish performance.
“The $23,800 area remains a deal breaker for markets to continue bullish momentum,” he said on Twitter.
— Michaël van de Poppe (@CryptoMichNL) March 1, 2023
Given the news in the broader markets, such as digital asset-friendly Silvergate’s likely and unverified bankruptcy at the time of writing, van de Poppe said it is time to push the market.
Bitcoin is one of the assets affected by the instability at Silvergate Capital, a US bank known for its endorsement of cryptocurrencies.
Silvergate on the brink of collapse
Silvergate experienced a bank run late last year, which resulted in the sale of assets at a loss, lowering its overall capitalization.
Since the lender is a member of the Federal Reserve System, the unpredictability has heightened the probability of an enhanced regulatory crackdown.
The bank is actively assessing its capacity to continue operating. Therefore, numerous digital-asset exchanges, stablecoin issuers and trading businesses have stopped using its notable payments network, which facilitates fast fund transfers between crypto firms.
The digital-asset market is struggling to discover new payment alternatives. The incident’s uncertainty has fueled concern that regulators may crack down on the industry, further limiting cryptocurrencies’ likelihood of exiting the bear market.
Another crypto analyst with the Twitter handle StockmoneyL said that the Silvergate liquidity problems are a “short-term sentiment killer” for BTC.
Silvergate bank liquidity concerns are another short-term sentiment killer.
If 22.8k cannot be overcome, we’ll likely retest 21.4k support level. pic.twitter.com/IKZ217vTGF
— Stockmoney Lizards (@StockmoneyL) March 3, 2023
Meanwhile, van de Poppe cautioned that the Silvergate crisis is similar to the Mt. Gox hacking case and that investors can expect more ramifications from the problem.
Collectors of the Mt. Gox crypto exchange are now on the cusp of retrieving some of their assets after a gruelling 10-year liquidation process.
In response to bankruptcy reviews, Mt. Gox collectors will begin collecting BTC reimbursements on Friday, March 10, while most may be an accessible “early lump sum” option.
BTC price declined by five percent in 60 minutes in the early hours of Friday, from $23,500 to $22,240.