JPMorgan Chase acquires assets of First Republic as legacy banking system shows vulnerabilities

JPMorgan Chase acquires assets of First Republic as legacy banking system shows vulnerabilities

JPMorgan Chase has acquired the deposits and a “substantial majority of assets” of troubled bank First Republic in an auction, making it the third regional bank in the US to fail since March. This highlights the vulnerabilities in the legacy banking system.

Bitcoin experiences fourth consecutive month of growth

Bitcoin has experienced four consecutive months of growth from January through April, a milestone last achieved in 2013. However, the recovery is facing a hurdle above $30,000, indicating that the bulls are wary of buying at higher levels due to the upcoming Fed meeting on May 2 and 3.

Historical data does not give a clear advantage to either the bulls or bears in May, with five positive and five negative monthly closes in May, according to Coinglass data.

Levels that bulls need to defend on Bitcoin and select altcoins

To keep the chances of continuation of the up move alive, the charts of the top 10 cryptocurrencies were studied to determine the levels that the bulls need to defend on Bitcoin and select altcoins.

The long wick on Bitcoin’s April 30 candlestick chart shows that the bears are aggressively defending the overhead resistance at $30,000. The bulls are fiercely protecting the 50-day SMA ($28,146), suggesting that the BTC/USDT pair may swing between $26,942 and $30,000 for a while.

The bears are expected to mount a strong defense in the zone between 4,200 and 4,325 for the S&P 500 index (SPX). If the price turns down from the overhead zone but does not fall below the moving averages, it would suggest that sentiment is turning positive and traders are buying dips.

The U.S. dollar index (DXY) is trying to break out of the range after trading between the 100.82 support and the 20-day exponential moving average (EMA) of 101.93 for the past few days. The index could rally to the 50-day SMA (103.05) if buyers sustain the price above the 20-day EMA.

On the downside, the XRP/USDT pair may collapse to the next major support level of $0.36 if the strong support level of $0.43 cracks. The ADA/USDT pair may descend to the next support level of $0.33 if the price plunges below $0.37.

If buyers drive the BNB/USDT pair above the symmetrical triangle pattern, it would signal the start of a new up move. The DOGE/USDT pair may climb to $0.11 if the price bounces off the current level and rises above the 20-day EMA.

The SOL/USDT pair could slump to the strong support level of $18.70 if the bears manage to sink the price below the 50-day SMA. Alternatively, if the bulls catapult the price above $27.12, the next stop could be as high as $39.


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