Bitcoin rose above $20,000 again on Saturday, even though the market is spooked by the collapse of yet another banking institution.Silicon Valley Bank was closed Friday by U.S. regulators authorities, causing many institutions to lose access to capital. This included USDC issuer Circle, which led to the USDC depegging. Ethereum also rebounded on Saturday.
Bitcoin (BTC) rose above $20,000 again on Saturday, despite the overall volatility in the financial markets being at historic highs.
This is due to the Federal Deposit Insurance Corporation (FDIC) confirming that it will close Silicon Valley Bank.
DespiteBTC/USD ran up to an intraday high of $20,792.53 within 24 hours of trading at a low of $19,628.25.
Overall, today’s marginal price gains are attributed to the 14-day Relative Strength Index (RSI) finding a floor at the 27.00 level.
At the time of this writing, the index is at 28.46 and bitcoin is at $20,279.45 as the earlier rally has eased.
Market volatility is likely to remain high over the next few days, with bitcoin likely to move above and below $20,000 throughout the weekend.
Ethereum (ETH) also rallied significantly to start the weekend as prices rose above $1,400 again.
Following yesterday’s two-month low of $1,378.53,ETH/USD moved to a peak at the $1,481.32 level on Saturday.
This move is what Ethereum bulls bought yesterday’s dip as price strength moved deeper into oversold territory.
Ethereum’s RSI fell to 28.30 on Friday, the weakest since last June, but the index has since rallied.
At the time of writing, it is tracking at 32.26 and appears headed for a long-term floor of 34.00.
Once this point is reached, Ethereum will likely cross $1,500 again.
Sign up for email here to receive weekly price analysis updates.
Image credits: Shutterstock, Pixabay, Wiki Commons