The Thursday session has witnessed yet another slump in the trading price of Bitcoin (BTC). According to the latest market data, Bitcoin’s price has dived due to the latest developments involving the Silvergate Bank.
The historical data shows that it was the fourth session that saw the trading price of BTC moving in a negative direction.
The entire crypto market was already hurt due to the developments taking place about the Silvergate Bank. The crypto pro bank had been supporting the crypto industry for a while.
It had many major clients from the crypto industry that also included Coinbase. Unfortunately, the bank not only faced financial issues but also regulatory scrutiny, and more, which forced it to go for liquidation.
The officials announced today that they have made the decision of liquidating their company. The depositors will be refunded their funds once the liquidation is complete.
Just as the breaking news came out, the crypto market faced yet another cash. However, as the firm liquidated itself and promised to refund every depositor, it ended up deflecting the massive downtrend.
After the news came out, the trading price of Bitcoin ended up slipping down to a lower level. The asset reportedly went down to a low of $21,609.99 as the trading day began.
Prior to the plunge, the trading price of BTC was at a high of $21,198.90, which was recorded on Wednesday.
The chart shows that this is the lowest level BTC has hit since February 13. Back on February 13, BTC’s trading price was recorded at a low of $21,366.
The situation of the relative strength index has worsened due to the recent downtrend as well. It has declined to the lowest level since the 28th of November.
The RSI reportedly fell below the 37.00 support point and it is currently hovering at 36.86. If nothing good comes from the crypto market or the BTC market, the RSI may continue lowering.
This would result in further losses to the trading price of Bitcoin.
Ethereum is suffering from the same situation as Bitcoin. The token has been impacted by the latest proceedings involving the Silvergate Bank.
However, its downtrend is lower than its biggest rival, Bitcoin, because ETH’s latest decline marks its third consecutive decline.
According to the market data, the trading price of ETH was at a high of $1,563.41 before the decline was recorded. With the investors losing their confidence, the trading price of ETH has declined to $1,530.43 in the past 24-hours.
The past 7-day performance of ETH shows that the asset has suffered from a 7% decline in value. The RSI for ETH is at 40.57 and if it keeps declining, ETH may lose its power and fall to $1,500.