The equity market is currently looking for reasons to fall, and it is unclear whether this will benefit cryptocurrency. At the moment, cryptocurrency appears to be benefiting from the banking crisis and the resulting safety trade, with Bitcoin being the primary beneficiary. Although there has been some recovery in cryptocurrency, it is primarily driven by Bitcoin, which has been the most directly impacted by the banking crisis. Ethereum is also increasing in value, though not to the same extent as Bitcoin because Bitcoin is considered a more pure play.
According to Gareth Soloway, Bitcoin is currently surging and has just reached resistance at 30,000. It's worth noting that the critical level of resistance is between 30,000 and 35,500. This Bitcoin surge can be attributed to First Republic Bank's (FRC) recent announcement, in which they reported a 40% loss in deposits in the last quarter and a stagnation in their business. Wall Street was taken aback by this news, which caused FRC's stock to plummet. To make matters worse, the FRC refused to take questions from analysts during their conference call, which was abruptly terminated. This was not well received by the industry, especially since JP Morgan and Wells Fargo had given them $30 billion to assist them during the banking crisis a few months ago. As a result, Bitcoin began to rise as soon as FRC's stock began to fall, and it has since continued to rise steadily.
The key takeaway for investors is that everything is within expected levels, as shown on the daily chart. The 30,500 level represents a critical line in the sand, with the range from 30,000 to 30,500 being closely monitored. If Bitcoin manages to break above 30,500 and maintain that level for several days, it is considered a confirmed breakout and may continue to rise. However, it is critical to be cautious about this rise because, if the banking crisis does not worsen, this resistance level could become a top, and Bitcoin could fall again.
According to Soloway, Ethereum is rallying, but there is a resistance point on the upsloping trend line. It's worth noting that Ethereum isn't hitting new highs like Bitcoin, implying that Bitcoin is a pure play in this situation. Even though Ethereum is benefiting from the banking crisis, it is not growing at the same rate as Bitcoin. It's similar to how silver doesn't always track gold's price movements because it has an industrial component as well as being a safe haven. Ethereum may be thought of as the silver to Bitcoin's gold. Investors should keep a close eye on the Ethereum chart's pivotal level of around 1960 to see if it breaks through. In the grand scheme of things, the speaker is still in the same camp as before.
Ethereum is not at its recent highs like Bitcoin, indicating that Bitcoin is the "pure play" for investing during a banking crisis. While Ethereum is still gaining ground, it is not at the same level as Bitcoin. In fact, Bitcoin is similar to gold in that it is a pure store of value, whereas Ethereum is similar to silver in that it has an industrial component. In terms of the economy, we're still on track for a recession in the second half, as economic data, including job numbers, continues to deteriorate. The Federal Reserve has also indicated that a mild recession may occur in the second half, but that it may be worse than expected. The Fed is also expected to announce a rate decision next week, with interest rates likely to rise by 25 basis points.
Source:
Let's Talk Crypto, 27 April 2023, "BITCOIN Is The PURE PLAY | Gareth Soloway Crypto Update",
