Bitcoin dropped 5% within an hour on March 3, falling to its lowest level in over two weeks, while major altcoins also experienced a significant plunge.
The recent bearish event resulted in $65 million worth of liquidations and a spike in negative sentiment on social media, contributing to fear, uncertainty, and doubt (FUD) among traders.
Despite Silvergate Capital's shares crashing by 60% and reaching all-time lows, Bitcoin was able to avoid significant damage.
Bitcoin attempted to break above the $25,000 psychological level but failed to overcome resistance, resulting in a minor sell-off in the cryptocurrency market on March 2.
With sustained selling pressure, Bitcoin will seek support at the 61.8% Fibonacci retracement level at $21,520, which coincides with the 100 three-day Simple Moving Average (SMA) as its first foothold.