Opinion articles

What is happening with the price of BTC?

¿Qué está pasando con el precio de BTC?

We rarely refer to fundamental issues, since we focus on technical analysis daily. However, we do not neglect the former, since these are the ones that move the price of a financial asset beyond its natural volatility.

The fact is that generally, when the price moves due to fundamental issues “at the moment”, the rebound is also volatile and, therefore, fast.

At the moment there are three factors affecting the price of BTC downward. 1. The case of the Californian Silvergate Bank (SI), which we have already referred to, and which announced last Wednesday, March 8, that it will voluntarily liquidate its operations.

We have already referred to this case and it is clear that its leveraged exposure to FTX was the trigger for its decision. 2. Next Tuesday, March 14, the US inflation figure will be released and the whole world is waiting for the figure to be revealed. 3. The US Government proceeded to sell 9,800 BTC of its 41,000 BTC portfolio between yesterday and today, which pushed the price down.

Of the three fundamentals mentioned, it is inflation that could have the most long-term impact, and would do so in either direction: bearish, if higher than expected, or bullish, if the opposite is true. Regarding Silvergate and the government sell-off, we believe that the first one has already been sufficiently discounted and the government decision is a one-off to watch.

On the technical side, what is relevant is not to lose the $19,856 support, which is the level at which most of the current holders have bought. If broken to the downside, it could lead us to revisit the $18,800 area, which is the next strong support. Again, we are optimistic about BTC’s performance in 2023, and even more so in 2024 (halving year), so we see interesting buying opportunities at current prices.

Los mantendremos al tanto de nuevos avances.