On February 13th, the value of Bitcoin declined slightly, as it continues to hover near its three-and-a-half-week low.
Bitcoin trades low
On Monday 13th February, Bitcoin (BTC), experienced a continuous trade near its multi-week low, due to the persistently bearish market sentiment. This sentiment was primarily driven by the anticipation of the upcoming United States inflation report.
On Sunday, BTC/USD reached its peak at $22,060.99 but quickly dropped to an intraday low of $21,539.50, marking the beginning of a bearish trend for the week. The decline in prices has caused bitcoin to remain near its lowest point since January 20, when the value was below $21,000.
Upon examination of the chart, it can be seen that the 14-day relative strength index (RSI) is currently close to a support level of 44.00. This move that is taking place today is indicative of the index’s current state. At present, the index is being recorded at 45.80, and the bulls are aiming to reach a resistance level of 50.00.
If the bulls are successful in reaching this resistance level, it could result in a further extension of this rally and an increase in market momentum. This target of 50.00 could serve as a crucial turning point for the bulls, and could potentially lead to further gains in the market. Therefore, it will be important to monitor the progress of the index as it approaches this target to gauge its future potential.
Death Cross Bitcoin
A “Death Cross” was reportedly seen on the weekly chart of the BTCUSDT price movement on February 13th, according to a technical analyst. This chart is often used by technical analysts to assess the medium to the long-term trend, and how the prices perform in this time frame impacts their short-term trading decisions.
The appearance of the “Death Cross” could indicate a potential decline in Bitcoin prices, leading to additional losses in the upcoming weeks. The technical analyst views this formation as a negative signal, forecasting a period of heightened volatility in the Bitcoin market and the broader cryptocurrency markets.
The recent formation of the “Death Cross” in the Bitcoin market could potentially indicate a decrease in prices and additional losses shortly. This development has been viewed with concern by technical analysts, who believe that it may foreshadow a period of heightened volatility and uncertainty for both Bitcoin and the broader cryptocurrency market.
Price Pressure on BTC
The SEC crackdown on crypto projects has put pressure on Bitcoin prices, which fell below $22,500 on February 9th due to consolidation after reaching $24,000 in early February. The chairperson of the SEC, Gary Gensler, stated that crypto staking providers were engaged in illegal activities and fined Kraken exchange $30 million.
The issuer of BUSD, Paxos, received a Wells Notice from the SEC and announced it would stop mining USD-backed stablecoins, causing a drop in Bitcoin prices by 6% in the last week. Stablecoins play a critical role in crypto trading and their absence could affect liquidity and volatility.
Final Thoughts
The recent drop in Bitcoin prices on February 9 was possibly influenced by the SEC’s crackdown on crypto staking providers and the fines levied on the Kraken exchange, as well as the announcement by Paxos to stop mining USD-backed stablecoins, which are crucial for crypto traders and affect liquidity and volatility as a result, it is important to approach the market with caution and be prepared for potentially tumultuous conditions in the weeks ahead.
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.
