In the wake of SVB’s downfall #TradingOutlook - Powered by KTG

In the wake of SVB’s downfall #TradingOutlook - Powered by KTG

An important week lies ahead following the aftermath of SVB’s downfall. What should traders bear in mind?

It was a busy and eventful week. We started with weakness on BTC, which saw further acceleration in downward pressure.

Any attempts to push the market higher were absorbed by sellers and they were even much shallower than in the previous week.

The market was pressed down with sellers coming to the market lower and lower, meaning bulls were becoming weaker and sellers stronger.

Powell’s hawkish speech on Tuesday contributed to that. It eventually resolved in a breakout to the downside on Wednesday with further accelerated move on Thursday driven by key event of the week - SVB troubles popping up.

After printing lows at around $19,500 on Friday, BTC started to consolidate. Incoming bad news related to SVB assets seizure, and knock-on effects on others (including $USDC depeg) didn’t cause the market to sell-off further.

BTC was resilient with buyers absorbing the selling pressure, and then stepping up even more aggressively.

Eventually, the market broke up and on Sunday we had further acceleration first on the back of positive news that the US is protecting all SVB deposits, and then on the announcement about SVB backstop and the Fed Emergency Fund.

As BTC got close to $22,700 (a major resistance), we see signs of buyers losing steam and we expect some reaction down even to $20,700 - $20,300 area with smaller challenges on the way around $21,900 and $21,350.

On the other hand, if BTC gets over $22,700, we may retest $25,300 with challenges around $24,000.

The situation is so dynamic now that it is difficult to determine where the market wants to go and with a lot of uncertainty, big shifts can happen during the week.

As such, it’s good to watch how the balance between buying and selling pressure changes (especially around key levels) and trade with momentum intraday. Flexibility in this kind of market environment is key.

This week, the market will be focused on further developments after Fed, Treasury and FDIC intervention in the banking sector. On the data front, CPI on Tuesday will be the most important number to be released.

Other data to keep an eye on:

Wed: PPI, Retail Sales

Thu: Jobless claims, Housing Starts

Fri: Eur CPI, Industrial Production

It’s going to be a very important week and we can expect big market moves, so be prepared for different scenarios in this dynamic environment. There will be many opportunities so stay focused, disciplined and flexible.

Good luck and have a wonderful trading week!

Trade now on and follow @KTGglobal for more trading insights.

The content above is neither a recommendation for investment and trading strategies nor does it constitute an investment offer, solicitation, or recommendation of any product or service. The content is for informational sharing purposes only. Anyone who makes or changes to their investment decision based on the content shall undertake the result or loss by himself/herself.

The content of this document has been translated into different languages and shared throughout different platforms. In case of any discrepancy or inconsistency between different posts caused by mistranslations, the English version on our official website shall prevail.

Read Next

We use cookies to improve your experience. To find out more, please read our Privacy Policy. By clicking "Accept", you consent to our cookie and Privacy Policy. Or you may click “Decline”to refuse to consent.

Stay Connected

WOO connects traders, exchanges, institutions, and DeFi platforms with democratized access to the best-in-class liquidity and trading execution at zero or low cost.

Terms of Service Privacy Policy Information Security Statement