Bitcoin Consolidates below $25,000 Resistance as Market Volatility Continues
By Currently, Bitcoin is trading just under the $24,000 level, with no noteworthy changes occurring over the last few days.[0] For the past week, the price has been staying below the $25,000 resistance level with minimal fluctuation.[0] We are paying close attention to the $25,000 level as it is an important area.[0] For Bitcoin to keep up the upward trend it has been experiencing recently, it must surpass this benchmark in the near future.[0] If the price goes above this area, it is probable that Bitcoin will experience another surge.
On the macro markets, Bitcoin is exhibiting a divergence from the S&P 500, which has dented the positive correlation between the two that sprouted in the pandemic.[1] The correlation between Bitcoin and the S&P 500 has decreased to its lowest level since 2021, going below 0.3 after reaching a high of 0.8 in May.[1] The reading of 1 implies assets are fluctuating in lockstep and minus 1 signifies the opposite.[1]
Over the last 24 hours, the cryptocurrency market cap experienced a net inflow of $4.1 billion, pushing its current total value to $1.09 trillion — a 0.4% increase from the previous total of $1.09 trillion. The total capitalization of the cryptocurrency market is $1.097 trillion, and Bitcoin is the leading asset, with a 42.3% market share. The market cap of Bitcoin is $447.5 billion.
As of writing this, Bitcoin is trading for approximately $24,700, having increased in value by 15% in the last seven days. At the time of writing, the price of Bitcoin is $24,170. Should the bulls keep the positive energy going and push Bitcoin's value above $25,000, another breakout is likely to occur. At this time, we are not engaging in any short-term trades involving Bitcoin.[0]
Should bitcoin price not surpass the $24,500 resistance, it may keep going downwards. Support at the downside is close to the $23,600 area.[2] Our next focus for Bitcoin is reaching the $21,500 level.[3] The $25,000 level carries psychological importance, leading to market instability and a potential decline in price. As a result, it is likely that market volatility will remain at this level.[4] Should Bitcoin break above this level, it could be a sign of positivity, potentially taking the cryptocurrency to a value of $27,500 or even $30,000.[4]
0. “Bitcoin Price Prediction Daily (24-Feb-2023) Levels to Watch on the Hourly Timeframe” Bitcoinsensus, 24 Feb. 2023, https://www.bitcoinsensus.com/bitcoin-price-prediction-daily-24-feb-2023-levels-to-watch-on-the-hourly-timeframe/
1. “Bitcoin Breaks Away From Stocks in 50% Surge Defying Macro Peril” Yahoo! Voices, 21 Feb. 2023, https://www.yahoo.com/now/bitcoin-breaks-away-stocks-50-101313701.html
2. “Bitcoin Price Recovery Could Soon Fade If BTC Fails To Surpass $24,500” NewsBTC, 24 Feb. 2023, https://www.newsbtc.com/analysis/btc/bitcoin-price-recovery-fade-24500/
3. “Bitcoin Slips Below $24,000 as Crypto Traders Eye PCE Inflation Data” Barron's, 24 Feb. 2023, https://www.barrons.com/articles/bitcoin-ethereum-price-crypto-markets-today-dca33115
4. “BTC/USD Forecast: Struggles With Noise just Above” DailyForex.com, 24 Feb. 2023, https://www.dailyforex.com/forex-technical-analysis/2023/02/btcusd-forecast-24-february-2023/191938
