Market cap rises over 25%

The cryptocurrency market experienced significant volatility this week due to the collapse of Silicon Valley Bank and Signature Bank, which led investors to speculate that the U.S. Federal Reserve might opt for a smaller interest rate hike or pause its current policy. The total cryptocurrency market capitalization rose by more than 25% over a seven-day period, reaching $1.16 trillion on March 17. Analysts suggest that ongoing macroeconomic uncertainties could fuel further interest in crypto assets.

Additionally, the Consumer Price Index (CPI) indicated that inflation in the U.S. slowed in February, boosting expectations of a smaller rate hike. Bloomberg analyst Mike McGlone noted that Bitcoin could start behaving like a U.S. treasury bond due to the ongoing troubles in traditional banking. This development contributed to a more bullish sentiment for many cryptocurrencies, which are increasingly seen as safe-haven assets amid economic downturns.

Renowned investor Robert Kiyosaki, author of *Rich Dad, Poor Dad*, has expressed concerns over the worsening global financial crisis due to the collapse of major banks, urging investors to buy cryptocurrencies, silver, and physical gold as a hedge against current financial turmoil.

JPMorgan reaffirms pessimistic outlook

After being trapped around the $110 level for several days, Bitcoin Cash broke out and surged above $130, reaching $138 before retracing slightly. Macroeconomist and trader Henrik Zeberg stated that as long as the U.S. economy avoids a recession, Bitcoin Cash and other cryptocurrencies will likely continue to see price support.

Despite this, investors should adopt a cautious investment approach, as the effects of the 2022 cryptocurrency crash, U.S. inflation, and rate hikes still impact the market. JPMorgan, one of the largest investment banks globally, has reiterated its negative outlook on the cryptocurrency market in a recent report following Silvergate Bank’s announcement to wind down operations and liquidate voluntarily.

JPMorgan raised concerns that this development poses a setback for the crypto ecosystem, as replacing the instantaneous network for dollar deposits and withdrawals will be challenging. The bank also pointed out the reversal of the CME futures spread, signaling a reduction in demand for crypto assets. According to JPMorgan, this could indicate diminished investor confidence in the future of cryptocurrency.

Technical analysis for Bitcoin Cash (BCH)

Bitcoin Cash (BCH) has experienced a rise of more than 20% since March 11, 2023, moving from $108.13 to a peak of $138.19. Currently priced at $133.93, Bitcoin Cash is still under bullish control, despite a recent pullback. As long as the price remains above $120, there is no indication of a trend reversal, and the cryptocurrency remains in the BUY-ZONE.

Key support & resistance levels for Bitcoin Cash (BCH)

In the chart from June 2022, I’ve marked critical support and resistance levels that traders should consider when analyzing price movement. For now, Bitcoin Cash (BCH) remains in the “BUY ZONE.” If the price moves past $140, the next resistance level lies at $150.

The crucial support level is $120, and if the price falls below this, it would signal a “SELL,” with the next target likely being around $100. If the price drops below $100, which represents very strong support, the next target could be $90 or even lower.

Factors supporting the rise in Bitcoin Cash (BCH) price

Over the past few days, Bitcoin Cash trading volume has significantly increased. If the price continues to rise above $140, the next target could be $150. Traders are purchasing BCH due to the increasing sentiment that cryptocurrencies are emerging as safe-haven assets amid the banking crisis.

Recent economic data from the U.S. also helped bolster investor sentiment, raising expectations that the U.S. Federal Reserve might reduce its interest rate hike or even pause it at its upcoming policy meeting. Technically, Bitcoin Cash (BCH) still has room for further upside, especially if Bitcoin’s price continues to perform well.

Indicators of potential decline for Bitcoin Cash (BCH)

This week has been successful for Bitcoin Cash, but investors should still adopt a defensive stance as macroeconomic uncertainty remains. The key support level for BCH is $120, and if the price dips below this, the next target could be $100. Bitcoin Cash’s price is also correlated with Bitcoin’s price, so if Bitcoin falls below the $25,000 mark, it will likely drag BCH down as well.

Expert opinions on Bitcoin Cash (BCH)

After climbing from a low of $108.13 on March 11 to a high of $138.19 on March 18, Bitcoin Cash (BCH) experienced a 28% gain in a short time. The central question now is whether it has more bullish momentum, which will depend on both technical and fundamental factors.

JPMorgan raised concerns after Silvergate Bank’s collapse, calling it a “setback for the crypto ecosystem,” highlighting the difficulty of replacing the instantaneous network for dollar transactions.

Ava dikan: Cryptocurrency is highly volatile and may not be suitable for everyone. Never speculate with funds you cannot afford to lose. The information provided here is for educational purposes and should not be considered financial or investment advice.