John Isige
The bellwether cryptocurrency, BTC is delicately holding onto support highlighted at $21,380 after tumbling from new 2023 highs of $24,320. Experts in the industry believe that Bitcoin price is at crossroads, whereby a weekly close above that level would trigger a bounce heading into the weekend. On the other hand, a bearish scenario would come to life if Bitcoin closes below the same support line.
Bitcoin Price Hits And Misses In February – What To Expect In The Short-Term?
Bitcoin price stalled at $24,320 while on the brink of igniting a rally to $30,000. Investors riding the upswing in January were confident that a break above $25,000 would create FOMO with BTC price moving fast to close the gap to $30,000.
However, February started on key dependencies, starting with the United States Federal Reserve (Fed) decision on interest rates hike and the jobs report. The latter materialized as expected, with the Fed raising the rates by 25 basis points.
However, the US jobs report suggested that the disinflationary remarks by the Fed Chair Jerome Powell had jumped the gun and inflation was still a problem that the greenback nation would need to deal with in the coming months.
Furthermore, forces within the crypto market have not been favorable with the Securities and Exchange Commission (SEC) going after Kraken exchange for apparently not registering its staking-as-a-service program. The exchange resolved to pay $30 million in fines, which many believed would result in similar crackdowns on staking platforms and networks like Ethereum.
That said, Bitcoin price is holding onto a loose thread at $21,385 presented by the 200-day Exponential Moving Average (EMA) (in purple) on the daily time frame chart. Slightly below this support line, is the 50-day EMA (in red) at $21,019.
These two moving averages are ready to absorb the buildup of overhead pressure. However, if declines overwhelm the buyer congestion in that range, Bitcoin price would have no choice but to extend its search for support to the 100-day EMA (in blue) at $20,126.
The delicate balancing at the 200-day EMA (in purple) might lead to more losses based on the position of the Moving Average Convergence Divergence (MACD) indicator. A sell signal came into play, validating the bearish outlook in Bitcoin price, as the MACD line in blue crossed below the signal line in red.
With the momentum indicator (MACD) closing in on the mean line, the path with the least resistance could stay on the downside. Investors who may want to short BTC may decide to do so as the MACD slides into the negative territory – below the mean line at 0.00.
Short positions will start turning profitable as Bitcoin price cracks support provided by the 200-day EMA and the 50-day EMA. Profit booking may start at the 100-day EMA (in blue), which holds marginally above $20,000.
Bitcoin Price Short-Term Analysis
The pioneer cryptocurrency is almost reaching short-term oversold conditions, based on insight from the Stochastic oscillator. As observed from the chart below, this trend strength indicator’s sharp drop from levels above 80.00 implies sellers still have the upper hand. However, this may not last long, considering oversold conditions often lead to a rebound in Bitcoin price.
Another sell signal investors should be paying attention to is the overlaying Super Trend indicator. This technical index takes into account the volatility in the market to help investors ride the trend, either up or down.
With the Super Trend holding above the price like in the case of BTC on the four-hour chart, declines tend to intensify. On the other hand, traders looking for buy entries need to be patient until the Super Trend flips to trail the price as the color changes from red to green.
Recovery from the prevailing market level must reclaim support above the 200-day EMA (in purple) to stay intact. Some investors may want to wait until Bitcoin price steps above $22,000 before they trigger their buy orders. From here, profit booking would start at $22,400, a hurdle reinforced by the 100-day EMA (in blue), the subsequent seller congestion at $22,800, $23,200, and $24,000, respectively.
Some analysts like Trader J believe Bitcoin price is at a crucial juncture, especially with the confirmation of a death cross on the weekly chart. A death cross occurs when a shorter-term moving average flips below a long-term moving average. For instance, the 50-day EMA sliding under the 200-day EMA as shown by the tweet.
However, it is not all bad for Bitcoin price, considering a recent forecast from Mags, an analyst, and trader with more than 15k followers on Twitter. Mags believes Bitcoin price “is retesting the point of breakout which looks very similar to the bullish re-test,” seen in 2019. If the trend line support holds, Bitcoin price could nurture an upswing to new all-time highs.
Bitcoin Alternatives To Buy Today
Investors seem worried that the crypto winter never really left and that ongoing declines will continue in the coming months. However, there are selected best altcoins to buy for 2023, as investors mull over the contents of their crypto prices.
All the tokens listed here make up the best crypto presales to by for 2023 and give investors a chance to be early adopters. Similarly, they are selling out fast because of the solid fundamental they possess along with the ability to shape the future of their niche sectors.
For instance, Meta Masters Guild (MEMAG), which is a new play-and-earn crypto project, is in its final presale with $4.3 million raised in less than two months. This up-and-coming ecosystem is integrating blockchain games into mobile devices, using cutting-edge Web3 solutions. Investors earn in Gems, an in-game currency that can be exchanged for MEMAG tokens and staked for additional rewards.
Fight Out (FGHT) is the second best-selling crypto presale in 2023 with $4.13 million raised far ahead of the first CEX listing. Investors scooping up FGHT tokens believe move-to-earn has the potential to attract a massive audience globally. Fight Out is a revolutionary M2E platform that is highly sought after for removing barriers to entry so that many people can lead healthy lifestyles while generating revenue.
For the first time in the history of the carbon credit industry, individuals have been given a chance to benefit from the efforts they put into ensuring a pollution-free planet. C+Charge will be rewarding drivers of electric vehicles with carbon credits for paying for charging at stations using CCHG, the token powering the ecosystem.
The carbon credits earned can be used to mint NFTs, thus supporting the real-world use cases of crypto and blockchain. So far, C+Charge has raised $990k in stages 1 and 2 of the presale, but stage 3 is coming in less than 2 days, where the price will increase to $0.016 from the current $0.0145.
Related Articles:
- Ethereum Price Prediction – Why You May Not Be Able to Buy ETH Much Cheaper Than it is Right Now
- Here’s Why Hedera Price Was Gaining Momentum in Past 7 Days, Up 24% at $0.0834 – Can HBAR Reach $1?
- US SEC is Suing Paxos For Issuing Unregistered Security BUSD, Reports WSJ
Fight Out - Next 100x Move to Earn Crypto
- Backed by LBank Labs, Transak
- Earn Rewards for Working Out
- Level Up and Compete in the Metaverse
- Presale Live Now - $4M+ Raised
- Real-World Community, Gym Chain
This article was written for Business 2 Community by John Isige.
Learn how to publish your content on B2C
Join our Telegram channel to stay up to date on breaking news coverage
Add B2C to your Google News Feed
Discuss This Article
Add a New Comment /Reply
Thanks for adding to the conversation!
Our comments are moderated. Your comment may not appear immediately.