Bitcoin (BTC) has experienced a 6% price surge, moving towards $29,000 on April 26, as concerns over the stability of the U.S. banking system continue to grow. Data from TradingView revealed a significant 6.5% upside compared to local lows during Asia trading.
The uptick in Bitcoin’s price was triggered by the sharp fall in deposits reported by First Republic Bank, which saw its share price plummet by 50% on the same day. The ongoing banking crisis has been a catalyst for cryptocurrency markets, with many investors reminded of the ongoing financial challenges since March.
Trading suite Decentrader cautioned that the market remains heavily short on Bitcoin, indicating a lack of confidence in the uptrend’s sustainability. However, the negative funding rates could potentially facilitate a short squeeze, liquidating bearish positions. As of April 26, no extreme liquidation events were observed, according to monitoring resource Coinglass.
Despite short-term fluctuations, some traders remain optimistic about Bitcoin’s trajectory. A trader named Jelle, who entered a long position near $27,000, wrote, “Expecting a minor dip into the area we just broke, before continuing higher. The 4h candles may look scary, but I’m not worried. 30k remains the target for this trade.”
Financial information resource Stockmoney Lizards also expressed a bullish outlook, stating that the 5-day BTC/USD timeframe is “very repetitive,” making it easy to read and predict.