After facing some strong selling pressure over the last week and so, the Bitcoin (BTC) price is on the path to recovery once again. As of press time, the BTC price is trading 3.5% up at a price of $28,331 and a market cap of $548 billion.
The recent recovery in Bitcoin comes at a time when the news of another major US bank collapse sparks concerns. As per the latest development, the First Republic Bank is facing massive capital outflows and is currently working on unloading between $50 billion and $100 billion in debt instruments as part of its “strategic options”.
The last time the banking crisis unfolded in the US in March this year, Bitcoin showed strong resilience by kickstarting a strong rally soon after. Now, the recent BTC price surge after the news of the crisis at the First Republic Bank hints that the digital asset is once again serving as a safe haven for investors.
Also, the surge in Bitcoin and other altcoins after the S&P 500 ended Tuesday’s trading session in the red. This clearly goes to show that Bitcoin and crypto are breaking free from their correlation with traditional market forces.
On-chain data provider Santiment reported that Bitcoin’s social dominance remains relatively high in comparison to other altcoins in the market. “Generally, high social dominance for Bitcoin happens during market euphoria or (in this case) fear. Prices can rebound quickly,” it added.
Popular crypto analyst Michael Van de Poppe writes: “Bitcoin isn’t looking bad on the higher timeframes. Healthy correction, and as long as #Bitcoin sustains above $25,300 it’s likely we’ll continue this rally towards $42,000″.
The crypto analyst further adds that the market structure is still isn’t bearish until Bitcoin flips $25,000 into a resistance. Thus, any crash-like situation is still not on the cards. Poppe adds: “$27,800 is the crucial breaker, after that we’ll probably accelerate quite fast”. Well, the BTC price is also above this and thus a quick rally to $30,000 can’t be ruled out.
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