The recent sell-off of Bitcoin since March 2 has been attributed to the Silvergate bank crisis, which saw a $1 billion loss. This bearish sentiment has caused BTCUSD to drop from its all-time high of over $60,000 in February 2021 down to around $22,266—a 7% decrease. Despite this downturn in price action, Bitcoin has managed to find support above the 23.6% Fibonacci retracement level at that same point and could continue battling resistance at higher levels such as 38.2%, the 50-day Simple Moving Average (SMA), and so on if selling pressure increases further still.
However, it is worth noting that even with these drops in prices, there are still investors who remain confident about the future prospects for cryptocurrency markets, including bitcoin, despite short-term volatility, largely because many institutional investors have entered into crypto markets recently, making them more attractive than ever before, which some analysts believe will help stabilize prices going forward and potentially lead them back up again soon after any major dips like what we’re seeing now with this sell-off post-Silver Gate Bank Crisis.
Overall, while it remains unclear how long this current downward trend may last or where exactly the bottom might be found, one thing is certain: cryptocurrencies are here to stay regardless of short-term fluctuations thanks to largely institutional investor involvement, which should provide more stability going forward compared to past years when only retail traders were involved in market speculation.