Bitcoin (BTC) faced the risk of dropping below $23,000 as a continuous price correction gained strength heading into the weekend.
Decline in BTC price support
On February 25, data from Cointelegraph Markets Pro and TradingView revealed that BTC/USD was struggling to hold the $23,000 mark. The pair experienced a nearly $1,000 drop on February 24, finishing the week weakly alongside US stocks as the dollar strengthened. With trading activity continuing through the weekend and thinner liquidity possibly leading to more significant movements. material Indicators noticed a notable bid support known as the “Notorious B.I.D.” and “great wall” on the Binance order book. This support had shifted lower during the week. Material Indicators remarked, “If the Notorious B.I.D. wall at $22,250 holds, it might contribute to the weekend whale games. It is advisable not to try catching falling prices.”
“Expect BTC to retest lows or potentially explore new price levels before a genuine Bull Market Breakout.”
Looking ahead to the impending weekly close, trader and analyst Rekt Capital identified $23,300 as a crucial level to maintain for the benefit of the bulls. Rekt Capital stated on Twitter,
“The ongoing retest of the Lower High and Monthly Range High resistance area is significant. Price stability here is crucial for a successful retest. A weekly close below this level would indicate a bearish trend.”
Another message pointed out that the monthly closure could heavily impact the overall trajectory since it was only days away.
A failed #BTC Weekly retest of ~$23400 as support would mean that price remains inside the Monthly Macro Range
Let’s see how the Monthly Closes
1M Close above ~$23400 -> likely range breakout
1M Close below -> $BTC stays in & range & could dip lower in range#Crypto #Bitcoin pic.twitter.com/xTAqH7pVlm
— Rekt Capital (@rektcapital) February 24, 2023
Bitcoin difficulty and hash rate maintain stability
Some people expressed disappointment that Bitcoin failed to surpass $25,000 and confront more significant long-term resistance levels. Crypto Chase succinctly summarized,
“It’s quite remarkable that we couldn’t achieve a surge above 25K to provide an excellent opportunity for short positions. Despite everyone being optimistic and enthusiastic, the price plummeted at the most evident resistance level. It’s unsettling. We may still encounter it later on… I’m uncertain. Crypto trading behavior has altered significantly.”
An update specified $22,700 as a support level to retain for another attempt at surpassing $25,000.
$BTC
Gonna want to see 22.7K hold if a real push above 25K for liquidity is still in the cards. Confluence of Daily S/R + 0.618 fib of current leg. pic.twitter.com/ZHShTi9SzT
— Crypto Chase (@Crypto_Chase) February 24, 2023
Despite these challenges, there was optimism regarding Bitcoin network fundamentals. The difficulty increased by 9.95% in the latest automatic readjustment – the most significant rise since mid-January. Despite the slowdown in price recovery, both the difficulty and hash rate have been reaching record levels, as reported by Cointelegraph. A contributing analyst to CryptoQuant, Maartunn, mentioned, “Bitcoin mining became 10% more challenging last night.”
The thoughts and opinions expressed here belong to the authors alone and may not necessarily represent the views of Cointelegraph.
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