Bitcoin on the edge of the precipice – This is the news of the day: the trading platform Bittrex goes bankrupt. A feeling of déjà vu, even if Bittrex is a much smaller platform than FTX. This shows that, despite the rise in price since the beginning of the year, the cryptocurrency sector remains fragile. In parallel, the bitcoin price fails to return above $28,000.
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Bitcoin price drops 1.8% in 24 hours
New day in the red for Bitcoin. Indeed, the price of Bitcoin 1.8% drop in 24 hours. Now the price is sinking 3% in one week :
In the table, only the performances in three months and in six months remain in the green. BTC shows a 18% increase in three monthsand of 60% in six months. The BTC/ETH pair 0.7% drop in 24 hoursand of 3.6% in seven days. Ethereum is rather resilient currently, even if theEthereum Foundation appears to be parting with 15,000 ETH.
Bitcoin price ready to underperform gold?
Bitcoin is an asset considered risk by market operators. For its part, gold is considered a safe-haven asset. Thus, it may be interesting to take advantage of Bitcoin’s outperformance against gold. On the other hand, in a situation of underperformance, it may be interesting to remain observant. Here is the chart of gold against Bitcoin:
In 2022, gold has largely outperformed bitcoin, the Gold/BTC pair rose sharply. In 2023, the trend changes, it is bitcoin outperforming gold. However, this situation is not set in stone, and gold could wake up. At the moment, the institutional bias (EMA 9/EMA 18) is bearish, it could act as a dynamic resistance. Thus, the course could join the weekly support.
For its part, the RSI is marking a bullish divergence with the fence above 45. The RSI is always located below the bearish trendlinebut a break in it could lead to bullish volatility. BTC must react quickly to continue the trend initiated in January 2023.
Towards a rebound in Bitcoin from the support level at $27,500?
The price of Bitcoin slips dangerously below the bearish trendline, nevertheless the rack at $27,500 could allow a rebound:
Institutional bias is bearishit could act as dynamic resistance. As long as the price is below the bearish trendline, there remains fragile. Thus, if the buyers do not react quickly, the price could join the next bracket at $26,700 even the bracket at $25,000.
The RSI continues to show feverishness. We will have to wait to find a momentum with bottoms and rising tops to be optimistic on the level of momentum.
The price of Bitcoin started the year 2023 rising from $15,500 to $31,000 in a few months. During this period, Bitcoin has outperformed gold, but some momentum signs are showing signs of losing momentum. The queen of cryptos must react quickly so as not to score a local top. Will the buyers be able to bring the price back above the resistance at $28,500?
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