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FameEX Daily Technical Analysis | UBS Buys Credit Suisse for $3.2 Billion, Sweeping Away Market Worries

2023-03-20 15:17:40

Yesterday, all major cryptos exhibited price appreciation with fluctuations between -3.07% and 2.92%. XRP was the strongest, greatly up 2.92%. Conversely, MATIC was the weakest, sharply down -3.07%. BTC and ETH, two of the leading cryptocurrencies, climbed 2.33% and fell -0.24%, respectively.

According to the 4-hour trading cycle depicted below, as the price touched the MA99 support and $20,000 on March 11th, a strong rebounce trend appeared. The price directly broke through the previous high of $25,000, and the long took the initiative with a positive attitude. From the perspective of SMAs, the MA7 support was higher than the MA25 support which was also above the MA99 support, indicating a standard long trend. Furthermore, the short-, medium- and long-term trends were dominated by the bull market. It should be noted that this wave of rally has increased by nearly 40% since the low point, and there is a concern about excessive price surge in the short term. Thus, it is recommended to pay attention to the risk when adding long orders.

Overall, the market is favorable to the long trend. Therefore, it is recommended to hold long positions at present, and enter into further orders when the price has a pullback but above the low point.

Source: TradingView

During the previous trading session, all three major U.S. stock indexes experienced downs. The Dow Jones index, with the weakest strength, tumbled 1.19%. The S&P 500 index also fell -1.10%. The Nasdaq index was relatively strong, with a slight fall of -0.74%. Meanwhile, two of the leading cryptos, BTC and ETH, rose 2.33% and fell -0.24%, respectively.

As to political and economic fields, according to the data from the Federal Reserve (Fed), funds lent through the discount window rose by $148.3 billion to a record $152.85 billion in the week ended March 15, compared with $4.58 billion in the previous week, underscoring the fragility of the U.S. banking system, which is still dealing with problems such as the withdrawals after the collapse of three banks in a row.

President Joe Biden on Friday called on Congress to intensify oversight and impose stiffer penalties on senior bank executives who are responsible for bank failure due to their mismanagement.

The foreign media citing sources reported that the Federal Deposit Insurance Corporation (FDIC) has required banks interested in acquiring Silicon Valley Bank (SVB) and Signature Bank to bid by March 17. In order to facilitate the sale, the U.S. government may not rule out sharing some of the losses.

Source: Yahoo! finance

Over the past 24 hours, there has been a total of $48.59 million in long liquidations and $72.75 million in short liquidations, resulting in a net short liquidation of  $24.16 million. In general, the change in the total amount of liquidations was not significant, and investors returned to a rational investment.

The Fear & Greed index has greatly increased to 63, over the significant threshold of 50, and hit a new high since November 2021. This suggests that the market has become optimistic.

The Bitcoin Ahr999 index has increased to 0.79, which is above the support level of 0.45 but below that of 1.2. This shows that the short-term trend becomes strong, but the long-term trend is still a bear market. Therefore, It is not recommended to buy the dip in batches. However, purchasing small amounts through dollar-cost averaging (DCA) may be a viable strategy. 

Based on the above analysis, the market has become optimistic with a stable price trend. Therefore, we recommend periodically buying with a fixed amount and selling them gradually as the market rises.

Source: Coinglass

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.

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