Bitcoin price has been hovering above its highest level since June 2022 over the past few hours. The largest cryptocurrency by market cap has jumped by 28.30% in the past week, while its year-to-date price inches higher to 70.63%. Bitcoin’s total market cap has increased by 4.77% over the last 24 hours to $547.7 billion, while the total volume of the coin traded rose by 50%.

BTC Skyrockets

Bitcoin price was rallying on Monday as most altcoins slumped, led by the largest altcoin by market cap, Ethereum. The global crypto market cap has increased 2.49% over the last day to $1.18 trillion, while the total crypto market volume jumped 34.88%. Bitcoin’s dominance inched 0.98% over the past 24 hours to 46.34%, its highest level since June 2022.

The recent global banking crisis in which three major banks in the US were closed within days has pushed the BTC price higher. Silvergate Capital, Signature Bank, and Silicon Valley Bank recently disclosed operational difficulties, prompting regulators to shut them down.

Switzerland’s largest banking institution, UBS, announced on Sunday that it had entered a merger deal with its embattled rival Credit Suisse. UBS announced that it would buy its rival for $3.25 billion, with Swiss regulators playing a key role in the ideal. According to the Swiss National Bank, the merger will secure financial stability and protect the Swiss economy.

Bitcoin reacted positively to the news, cruising past the key resistance level of $28,500, its highest level in 9 months. The digital asset seems to thrive in such occasions when the largest banks are experiencing massive issues. Bitcoin was launched during the last massive global financial crisis caused by banks. Many investors have shifted to digital assets amid the recent vulnerability in the banking sector and contagion fears.

Investors have now shifted their focus to the US Federal Reserve’s Interest Rate Decision scheduled for Wednesday. Markets are betting on a smaller interest rate hike on the back of the recent decline in the latest inflation data.

Bitcoin Price Analysis

As I had predicted here, Bitcoin price has been hovering above the key resistance level of $26,500 for the past few days. At press time, the digital asset was trading at $28,204 after hitting an intraday high of 28,472.

The coin has managed to remain above the 25-week and 50-week moving averages, as well as the 50-day and 200-day exponential moving averages (EMAs). Its Relative Strength Index (RSI) has inched higher to the overbought zone, while the Moving Average Convergence Divergence (MACD) indicator moves higher into the bullish zone.

Therefore, I expect the Bitcoin price to extend its current bullish trend amid the lingering bank contagion fears. A flip above the $30,000 hurdle will have the bulls eyeing the next resistance level at $34,780.75.