Yesterday bitcoin showed the strongest price growth since July 13. Prices of the main cryptocurrency rose by more than 2.5% and hit the level of 30,000. In the first half of the summer, this level acted as the support, but now it serves as the strong resistance. Today the bulls tried to break above the 30,000 mark. The first attempt failed to succeed, but given the recent news, it will not be the last one.
Many market participants thought that the U.S. banking sector problems, which manifested themselves last spring, had been safely resolved. However, just the day before, Moody's reminded about the unfavorable situation in the financial sector. Unlike their colleagues from Fitch, who downgraded the U.S. credit rating, Moody's representatives did not take such serious actions. However, their decisions were also in the center of attention of the investment community.
The agency downgraded the credit ratings of 10 small and medium-sized U.S. banks at once. The ratings of 17 more large financial institutions were under the threat of revision for the worse in the horizon of the coming months. Moody's representatives noted the drop in profitability, as well as the decline in asset quality of many U.S. banks as reasons for their actions.
Analysts pay attention to huge unrealized losses that arose due to negative revaluation of U.S. banks' balance sheets bonds. The high level of interest rates also worsens the creditworthiness of borrowers who find it increasingly difficult to service their debts. This situation is likely to increase the number of defaults and bankruptcies.
Back in March, it was easy to see that problems in the U.S. banking sector almost immediately increased the popularity of bitcoin and other cryptocurrencies. Obviously, bitcoin cannot yet be considered a full-fledged safe haven asset, but yesterday's surge in demand clearly shows that more and more investors are putting their trust in the main cryptocurrency.
Bitcoin prices need to consolidate above the 30,000 level to maintain growth. If successful, the next important mark of 30,500 may be tested immediately. The RSI indicator has turned sharply upward and confirms the buy signal.
Consider the following trading strategy:
Buy BTCUSD in the range of 29600-29800. Take profit 1 – 30000. Take profit 2 – 30500. Stop loss – 29100.