The Circle-issued USDC  stablecoin regained its dollar peg, recovering from the Silicon Valley Bank-induced chaos over the weekend that saw its price plummet to $0.90 on major exchanges.

On March 13, Glassnode’s exchange flow data recorded the most significant inflow to exchanges since May 2022. This means more supply on exchanges and potentially higher selling pressure.

The coin days destroyed indicator, which measures the time-weighted transfers of Bitcoin, also shows a small spike, indicating that old hands are moving coins. The indicators might signal profit booking by long-term holders, which can lead to a correction.

Bitcoin was approaching $26.5K on Tuesday but almost nullified the rise by the end of the day. On Wednesday, we still see a tug-of-war near $25.0K. Bitcoin got a pull on a wave of fears around the banking system - markets shifted sharply to the problems at Credit Suisse today, causing a sell-off in the euro and a jump in gold and silver.

Moving away from the news backdrop, Bitcoin prices are returning under the 200-week average, failing to go immediately higher. Technically, an important signal of a return to a long-term bullish trend would be a consolidation above $25K at the end of the week.

Nevertheless, keeping the price above 20K and the 200-day average looks like a sufficient condition that Bitcoin is not ready to decline sharply further and remains interesting for buying on declines. Not least because of large investors' distrust of the banking system.

Bitcoin maintained neutral grounds during bank disaster

Mar 15 2023