- BTC’s price jumps by almost 10% in the last 24 hours.
- This is due to the decision by U.S. regulators to protect all customer deposits at failed Silicon Valley Bank (SIVB).
Following the decision by the U.S. Department of the Treasury, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC) to restore all customer deposits at failed Silicon Valley Bank (SVB), Bitcoin’s [BTC] price rallied by almost 10% in the last 24 hours.
On 11 March, BTC’s price suffered a significant drop below $20,000 following a mass withdrawal of funds by customers of SVB.
As a result of this, the California Department of Financial Protection and Innovation shut down the bank on the same day. This led to the de-pegging of various stablecoins and other associated cryptocurrencies.
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Improved sentiments, however, returned to the market as Federal regulators, in a joint statement on 12 March, announced the approval of “actions enabling the FDIC to complete actions in a manner that fully protects all depositors” at the failed bank.
Traders flock to the BTC market
Exchanging hands at $22,422.56 at press time and with a 9% jump in price in the last 24 hours, BTC logged a corresponding hike in trading volume during the same period.
Per data from CoinMarketCap, the coin’s trading volume was up by 40%. A jump in an asset’s trading volume with a price rally to show for it is taken as a bullish sign that indicates improved positive sentiment and continuation of the uptrend.
Data from Santiment confirmed the positive sentiment that lingered in the BTC market at press time. The coin’s weighted sentiment was a positive 7.114% at the time of writing, suggesting that investors believed in the continued growth of the asset’s price.
Further, BTC’s price movement assessed on a 12-hour chart revealed a pattern of growing coin accumulation. Key momentum indicators such as the Relative Strength Index (RSI) and the Money Flow Index (MFI) rested above their neutral lines in uptrend positions.
This suggested that coin accumulation exceeded the distribution at press time. BTC’s RSI was 55.49, while its MFI was 51.90.
Likewise, its Chaikin Money Flow (CMF) reclaimed its spot at the positive territory and posted a value of 0.02 at press time. A positive CMF value is a bullish sign that hints at increased liquidity needed to drive up the value of an asset.
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Be at alert
Meanwhile, pseudonymous CryptoQuant analyst Crazzy Blockk assessed BTC’s Unrealized Profit/Loss and found that the metric’s next direction would determine whether or not the BTC market would suffer another capitulation.
Regarding the Unrealized Profit/Loss metric, a value above zero indicates that most investors are in profit, while a value below zero implies a loss.
In the current market, “after two heavy capitulation phases in the BTC market, the price is testing level 0 of this metric,” Crazzy Blockk noted.
According to the analyst:
“If the bitcoin price can maintain this level and the profitability of bitcoins in holders’ pockets begin to rise, the recovery phase will happen.in this case, the bitcoin price could rise again. If the net unrealized Profit/Loss metric, based on the holders’ real value, decreases continuously, there will be a possibility of a third capitulation phase or another heavy pain in the market.”