Until two weeks ago, hardly anyone would have thought cryptocurrencies could be a fast safe haven. But then, on Wall Street fortunes can turn quickly. Since the beginning of the SVB Saga on March 8, Bitcoin (BTC-USD) and Ethereum (ETH-USD), the two major cryptocurrencies, have been on a tear with BTC outperforming ETH.
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BTC has rallied 66% year-to-date and ETH has gained nearly 45%. This indicates BTC still continues to act as a preferred refuge of safety over ETH.
Importantly, from its March 10 low of $19,528, BTC rebounded to the $22,000 level and made a Fibonacci retracement of 1.6 on March 2022. ETH though failed to scale a similar peak.
Next, once again, cryptocurrency proponents will clamor about the value the crypto coins provide at a moment of peril (and maybe rightly so). Next, the $32,000-$33,000 remains an important level to cross so the crypto-bell-weather can continue on the path of recovery. ETH though could face immediate resistance at $2,100 at continue to underperform BTC.
One thing is certain, amid the spate of rate hikes globally and ever-tightening credit conditions, more banking dominos could be getting ready to tumble.
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