Bitcoin, Ethereum, Dogecoin Tumble As JPMorgan Takes Over First Republic: Analyst Says Apex Crypto's Dip Below $28.4K Shouldn't Be Viewed As 'Break'

Major coins traded mixed on Monday as traders are keeping a close watch on the upcoming U.S. job openings data, which is slated to be released on Tuesday.

What Happened: Bitcoin is struggling to maintain its price above $28,000 as it continues to spiral downwards at the beginning of the U.S. trading week. This comes in the wake of federal regulatory actions taken to seize control of First Republic Bank FRC, which has further dampened market sentiment.

At the time of writing, the global crypto market capitalization stood at $1.16 trillion, a decrease of 3.21% over the last day. 

The U.S. stock market inched lower on Monday following the recent government takeover and sale of First Republic to JPMorgan Chase & Co. JPM. The S&P 500 showed a marginal dip of 0.04%, while the Nasdaq Composite slid down by 0.11%.

See More: Best Crypto Day Trading Strategies

Analyst Notes: “Bitcoin is struggling here as Wall Street grows confident that the banking crisis risk has been removed from the table. It is looking like the US banking system has a playbook to deal with the next banking crisis when it emerges, which is somewhat dampening the case for cryptos. Bitcoin wasn't going to make a move above the $30,000 level before the FOMC decision, so selling it after JPMorgan's acquisition of the majority of First Republic's assets,” said Edward Moya, senior market analyst at OANDA.

He added, “Bitcoin has key support at the $27,000 level, followed by the $25,300 region.”

According to analyst Michael Van de Poppe, Bitcoin’s recent dip below the $28,400-mark shouldn’t be viewed as a significant break, as the cryptocurrency’s weakness persists. To capitalize on this market trend, the analyst recommends looking out for a potential long around $27,800, or waiting for a break and flip above the $28,400-level.

Pseudonymous trader ‘Crypto Tony’ believes that Bitcoin is not in a position yet. However, the trader points out the current support level at around $28,300, which could present an opportunity for a long scalp entry, provided it can be sustained. To confirm demand, Tony advises waiting for the formation of several 4-hour candles.

Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users