Will Bitcoin Climb or Collapse as Bank Chaos Subsides?

Will Bitcoin Climb or Collapse as Bank Chaos Subsides?

It appears that the risk of other banks going under is subsiding, which may also stifle the upside potential of Bitcoin moving forward. Elsewhere, the Commodity Futures and Trading Commission has filed a complaint against Binance and its founder Changpeng Zhao for allegedly violating US trading and derivatives laws.

Bitcoin’s Price Range

Which way will Bitcoin break out of last week’s range? The price range between $29,000 and $26,700 represents the high and low of the week-long consolidation period. The price has flirted with a break to the downside, touching as low as $26,500, but a confident close below $27,000 has yet to occur.

Market Sentiment

Bitcoin surged in March as confidence in the global banking system was shaken following the collapse of a few US regional banks and the Swiss giant Credit Suisse. As of now, the risk of additional bank failures seems to be diminishing, potentially capping Bitcoin’s upside momentum. The psychological level of $30,000 might be too ambitious for bulls if an upside breakout occurs. Instead, gold reaching $2,000 may be the more likely scenario at this point.

Regulatory Pressure on Binance

Adding further pressure to the crypto market, the Commodity Futures and Trading Commission (CFTC) has filed a complaint against Binance and its founder, Changpeng Zhao, alleging violations of US trading and derivatives laws. The CFTC accuses Binance of operating an “inefficient compliance program” and intentionally violating regulations. In response, Zhao has dismissed the allegations as “fake news” in a recent tweet.

Conclusion

As banking fears ease and regulatory scrutiny intensifies, Bitcoin’s price direction remains uncertain. Traders should closely monitor key price levels and regulatory developments to gauge the market’s next move.