tentacle jerks – The price of Bitcoin (BTC) continues to fall below $22,000 and is approaching a moving average, which it broke last month. Cryptocurrency seems to be suffering the repercussions of yet another SEC offensive against a crypto player.
Bitcoin Price Shaken by SEC Assault on Kraken
Bitcoin price drops as low as $21,500 on Bitfinex today, February 10, 2023. The cryptocurrency is trading at $21,602 at the time of writing this article. Its price is currently recording a daily loss of 0.92%.
Bitcoin price is currently down 10.88% from its local high this year. The loss of $22,000 comes at a time when the SEC takes on Krakenforcing the crypto exchange to halt its cryptocurrency staking services for US customers.
This regulatory onslaught has also raised concerns about the future of cryptocurrencies like Ether (ETH), which runs on a blockchain using proof-of-stake.
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RSI Plunges Ahead of New Uptrends Forming
Bitcoin is currently trading just above its 200-day exponential moving average. Cryptocurrency could retest this average for the first time this year, after crossing it in January.
As the price of Bitcoin retreats from $23,000, traders and analysts are looking at its RSI, trying to determine the likelihood of a bullish bounce or an even deeper drop.
Analyst Matthew Hyland shared a graph of the cryptocurrency price on a daily basis, compared with the RSI. Bitcoin, which was trading at $21,678, was resting on support at the time, as the daily RSI, which “collapsed along with the price” of the cryptocurrency, fell. dipped below a trendline and supportas shown in the graph below.
Trader Rekt Capital was also interested in the RSI, but on a longer time frame. He indicated that the monthly RSI is approaching “ bear market lows of 2015 and 2019” – the green area in the graph below.
However, Rekt Capital continues to issue an optimistic outlook, pointing out that this indicator is approaching a zone “where new trends RSI and thus BTC price uptrends emerging.”
Is this drop below $22,000 a normal correction, after Bitcoin price hit a local high above $24,000 this year? In the current environment, the upcoming weekly close and the outcome of the 200-day exponential moving average test are key events to watch.
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