On February 24th, the value of Bitcoin plummeted below $24,000 as investors braced themselves for the release of the eagerly anticipated consumer sentiment figures from the United States. Market participants were hopeful that the report from the University of Michigan would reveal an increase in confidence, despite the current inflationary pressures.
Bitcoin Depreciates
On Friday, the value of Bitcoin (BTC) continued to experience downward pressure and traded below $24,000 once again. As the market awaited the release of the U.S. consumer sentiment data, BTC/USD dipped to an intraday low of $23,693.92. This decline followed less than 24 hours after Bitcoin reached a peak of $24,177.57.
The drop in Bitcoin’s value can be attributed to the fact that it was unable to maintain its recent breakout above a long-term resistance level of $24,200. The market had previously tested this level multiple times but was ultimately unable to sustain it as support. The current market environment for Bitcoin remains uncertain, as investors continue to weigh the impact of various factors, including inflationary pressures, regulatory developments, and the broader economic climate
When examining the chart, it becomes apparent that the 14-day relative strength index (RSI) has recently undergone a breakout, as the index has descended below a critical threshold of 58.00. At present, the RSI stands at a reading of 55.97, indicating a further downward trend.
The next identifiable level of support for the index appears to be at the 53.00 zone. If the bears succeed in driving the RSI down to this level, there is a high probability that bitcoin’s market price will plummet below $23,000
Price of Bitcoin Meets Resistance
Bitcoin’s value has been on a downward trend and has dropped below its $23,200 support zone. It even dipped below the $23,000 support zone and reached the $22,750 area.
A low was established around $22,739, but the price is now starting to recover. The BTC/USD pair has broken through the $23,200 resistance zone and a crucial bearish trend line with resistance at $23,300 on the hourly chart. The pair has also surpassed the 23.6% Fibonacci retracement level of the downward move from $24,602 to $22,739.
Bitcoin is currently trading above $23,500 and the 100 hourly simples moving average. The next hurdle is at the $23,650 mark, which is close to the 50% Fib retracement level. The first significant obstacle remains at the $24,000 level, with a clear move above it potentially leading the price to the $24,600 resistance zone
Currently, the foremost obstacle for the market seems to be concentrated in the vicinity of the $25,000 zone. However, if the market manages to overcome this significant hurdle and close above the $25,000 resistance level, it could potentially establish a strong upward trend, leading to a substantial increase in price.
If this scenario unfolds, there is a possibility that the price may rise toward the $25,800 level, representing a notable gain for investors
Final Thoughts
Despite experiencing a downward trend and dropping below its support zones, Bitcoin’s price has started to recover and is currently trading above its 100 hourly simple moving average. The next challenge is to surpass the $23,650 mark, with the ultimate goal of breaking through the $24,000 level, potentially leading to a rise toward the $24,600 resistance zone.
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.
