Bitcoin price is once again reacting positively to news of another U.S. banking crisis. It can start making quick profits from here.
Bitcoin (BTC) price is once again on the road to recovery after periods of strong selling pressure like last week. As of press time, BTC price rose 3.5% to $28,331, with a market capitalization of $548 billion.
Bitcoin’s recent resurgence comes amid concerns over the collapse of another major U.S. bank. First Republic Bank, which is facing massive capital outflows, is working to sell $50 billion to $100 billion in debt instruments as part of its "strategic options," according to the latest developments.
The last time the U.S. banking crisis broke out in March of this year, Bitcoin showed great resilience and soon launched a strong rebound. Now, the recent surge in BTC prices following news of the crisis at First Republic Bank shows that digital assets are once again becoming a safe haven for investors.
Additionally, Bitcoin and other altcoins surged after the S&P 500 closed in the red on Tuesday. This clearly shows that Bitcoin and cryptocurrencies are breaking away from their correlation with traditional market forces.
Bitcoin (BTC) Price Could Rebound to $42,000
On-chain data provider Santiment reports that Bitcoin’s social dominance remains relatively high compared to other altcoins on the market. “Generally speaking, high social dominance for Bitcoin occurs during periods of market euphoria or (in this case) fear. Prices can rebound quickly,” it added.
“Bitcoin isn’t looking bad on higher timeframes. Healthy correction, as long as#Bitcoinstays above $25,300 we have the potential to continue rallying towards $42,000,” wrote popular cryptocurrency analyst Michael Van de Poppe.
The crypto analyst further added that until Bitcoin breaks above $25,000 as resistance, the market structure remains not bearish. Therefore, any crash-like scenario remains unlikely to occur. “$27,800 is the key breakout level, after which we could see an acceleration,” Poppe added. Well, the BTC price is also above that, so a quick rally to $30,000 cannot be ruled out.
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