As the US releases its inflation data, Bitcoin investors eagerly await the impact of the cryptocurrency's price. Bitcoin has rebounded nearly 30% from its recent lows, currently setting a new 2023 record above $26,000, amid a banking sector crisis and widespread bank runs. Ethereum has also seen a rise in value, currently trading above the $1,600 mark. US authorities' readiness to support banks that accept cryptocurrency has instilled investor confidence, leading to a surge in cryptocurrency demand. This move has contributed to an overall market worth rise and reinstated trust in the financial sector.
The recent surge in BTC's value was ignited by the US regulators' backing for Silicon Valley Bank and Signature Bank, which many investors and traders viewed as a positive signal for the overall banking sector. The European Union has proposed a specialized blockchain containing the region's relevant personal identity and data information, which is expected to boost investor confidence in the cryptocurrency sector.
The US dollar faced difficulties in gaining momentum on Tuesday and hit a multi-week low due to concerns about a potential systemic crisis following the collapse of a US technology-focused lender. The current crisis in the banking sector has sparked speculation that the Federal Reserve may halt its aggressive rate-hiking cycle. As a result, market expectations suggest that there is a 31% chance of rate cuts expected in June and for the rest of the year.
On Tuesday, the BTC/USD pair traded with a bullish bias at the $25,750 level. On the upside, Bitcoin faces immediate resistance at the $26,700 level. Further on the higher side, a breakout of the $26,700 level can open up further room for buying until $27,400. On the lower side, Bitcoin's immediate support level is at $25,125, and a break below this level could open up further room for selling until the $23,750 level. It may be worth considering a buying trade if the price surpasses the $25,225 level today.
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