Bitcoin drops amidst Silvergate woes- Can bulls defend the $21K support?

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Bitcoin [BTC] dropped sharply on 2 March following Silvergate’s woes. Major crypto clients like Coinbase suspended business with the troubled Silvergate bank sending its stocks to plunge over 50%.

Investors reacted cautiously to the development, as some retreated to stablecoins, leaving most of the crypto market in the red, as shown below. 

Read Bitcoin [BTC] Price Prediction 2023-23

Source: Coin360 (Daily crypto market performance on March 3, 2023)

Source: BTC/USDT on TradingView

BTC posted solid gains after jumping from $16.61K in early January to $25.25K in February. In the past few weeks, $22.63K has been steady support, showing bulls weren’t willing to exit yet. However, Silvergate’s woes on 2 March tipped bears to breach the support.  

In addition, BTC broke a key ascending line below, flipping the market into a bearish structure. Bears must overcome two hurdles to dent any prevailing bullish sentiment completely.

At press time, they struggled to bypass the 50-day EMA (exponential Moving Average) of $22,373. If bears succeed in pushing BTC below the 50-day EMA, they have another hurdle at 100-day EMA ($21,204) to bypass.  

On the contrary, the failure of bears to overcome the above hurdles could attract a new buying spree. It could push the BTC price toward the overhead resistance of $25.25K. But bulls will only gain leverage if BTC price action is above the ascending line and $21K support is solidly secured.

The RSI showed increased divergence with price action since mid-January, reiterating the weakening uptrend momentum. Moreover, the retreating Average