Momentum ? The price of Bitcoin (BTC) loses the $24,000, after the $25,000 halted the bull run. Traders view the drop as a necessary correction, for eventual bullish continuation beyond this year’s highs.
Bitcoin price: a correction and a weakening of the rejection point
Bitcoin price drops as low as $23,586 on Bitfinex today, February 22, 2023. The cryptocurrency is trading at $23,780 at the time of writing this article. Its price is currently recording a daily loss of 2.78%.
The price of Bitcoin thus continues its fall, after its rejection at levels near the 200-week moving average, around $25,110. Trader Rekt Capital commented that “ this rejection may be necessary to show that this 200-week moving average is “weakening as resistance.”
The trader illustrated his analysis by sharing a chart that shows Bitcoin trading at $23,742. He pointed out that “a shallow/moderate rejection from here would be a good sign of the weakening” of this average, as a “rejection point”.
>> During the crypto winter, take advantage of low prices, register on eToro (commercial link) <<
Fed rate hikes in the face of liquidity injections in Asia
Will the price of Bitcoin be able to conquer $24,000 in the very short term? Cryptocurrency price is experiencing a relatively large downside correction, as “FOMC minutes” released today reveal that at the February 1 meeting, the committee felt that “ continuous increases within the target range of federal funds rates would be appropriate,” to bring inflation down to 2%.
Can the quantitative tightening carried out by the American Federal Reserve prevent the price of Bitcoin from continuing the increases started since the beginning of this year? The Twitter account tedtalksmacro had indicated that analysts should be interested in much larger liquidity injections, than chinese and japanese central banks are doing to support their economy.
On paper, these liquidity injections may indeed weigh more heavily in the balance than the Fed’s restrictions. Asian central banks could then fuel a possible Bitcoin bull run.
Currently, Bitcoin price is retesting the former confluent resistance zone on a weekly basis, which sits at $23,335-$23,700. The outcome of this test will determine the likelihood of another bullish impulse to regain $24,000, and reattack the 200 week moving average.
Scams are unfortunate hazards, but not inevitable. Any investment involves risk. As a well-informed investor, have you done your own research and decided to take the plunge? Current prices are an opportunity to add a few satoshis to your wallet! To do this, register on eToro (commercial link).