Despite what looked to be synchronized warnings from global regulators on the risks that crypto-assets represent to the world’s financial system, Bitcoin price continued to trade near support at $24,000, making for a relatively quiet day in the cryptocurrency market.
After beginning 2023 below $16,600, Bitcoin returned to levels not seen since August with a brief visit above $25,000. More than $100 billion has been added to the market capitalization of all cryptocurrencies in the past several days.
According to TradingView’s data, Bitcoin’s price began rising late on Wednesday and peaked above $24,600 during Thursday’s early trading hours before tumbling to a daily low of $23,630 and only recovering near the main support level located at $24,000.
Bitcoin Price Trading Sideways
At the time of writing, Bitcoin has risen 0.5% in value over the past week, and is currently trading at $23,891, data from Coingecko shows. The most popular coin dropped 2% in the past day.
According to analysts, the decline in Bitcoin had minimal effect on the values of March Bitcoin futures. The slight retreat in price this week was not entirely negative, and that bulls still had the near-term technical advantage because of the established uptrend on the daily chart.
Bitcoin futures are contracts that allow traders to speculate on the future price of Bitcoin. March Bitcoin futures specifically refer to Bitcoin futures contracts that expire in the month of March.
Bitcoin sideways price action, or consolidation, refers to a period of time when the price of Bitcoin trades within a relatively narrow range, with little upward or downward movement.
Bitcoin Bulls Aim For $24,500
During consolidation, there is typically low trading volume and a lack of clear direction in the market. Consolidation can occur after a period of volatility or a significant price move, as traders and investors take a pause to reassess the market and decide on their next moves.
Consolidation can be seen as a period of uncertainty, but it can also provide an opportunity for traders to accumulate or sell Bitcoin at relatively stable prices before the next price move.
Bitcoin (BTC) is currently trading between the 21-day exponential moving average (EMA) and the 50-day EMA, providing further context for Bitcoin’s sideways price action.
Conversely, Bitcoin bulls must push the price above $24,500 to secure a $480 million profit opportunity. Nevertheless, the bears’ best case scenario calls for a 3.5% price plunge below $23,000.
Crypto total market cap at $1 trillion on the daily chart | Chart: TradingView.com
GDP came in lower than expected, but still massively positive at 2.7%.
The recession is avoided, for now.
That’s a great sign for continuation on the markets.
Bring #Bitcoin to $30K.
— Michaël van de Poppe (@CryptoMichNL) February 23, 2023
$30K Next Target For BTC?
Meanwhile, the bears have a decent chance of improving their condition despite the negative pressure from the US central bank’s push to combat soaring inflation.
And, for Eight Global’s founder, Michal van de Poppe, today’s GDP print means a recession has been avoided for the time being and that $30,000 is the next target for Bitcoin.
-Featured image from Reuters