BTC sheds early month’s gains as new market uncertainty looms – Cryptopolitan
Bitcoin price analysis shows that BTC/USD is following a bearish change after dropping to lows of $23,245.02. The BTC/USD pair has failed to hold on to its first month gains, falling from highs of $25,000. Since then, it has followed a downward trajectory and is currently trading just above the $23,000 support level.
As the economic landscape remains unpredictable, speculation surrounding Silvergate’s future grew after Coinbase discontinued its services out of “an abundance of caution,” leaving the pair in limbo.
Silvergate’s 10-K report, scheduled for this week, has been delayed due to the damaging fallout from the FTX implosion. Furthermore, the company warned that capitalization levels could be “less than good.” At the time of writing, Silvergate Capital’s parent company had seen its shares fall a staggering 40%, making it one of the worst trading days for these securities.
Despite the massive pressure, Coinbase Global (COIN) shares only fell 9.65% in the market, and Bitcoin’s price action managed to avoid further losses.
Bitcoin price analysis on a 1-day price chart: BTC falls below $23,500
Bitcoin price analysis on a daily chart shows that Bitcoin’s price fell sharply from an intra-day high of $23,744.94 to a low of $23,245.02. As of now, BTC/USD is trading at $23,269.37 and is likely to remain in a tight range before making any notable moves up or down.
The Moving Average Convergence Divergence (MACD) indicator shows that the pair has been bearish since early February and is likely to remain bearish in the near future.
The Relative Strength Index (RSI) has also fallen from a high of 68.90 to 44.71, adding weight to the bearish Bitcoin price analysis. Parabolic SAR also turns bearish as price trends below the dots.
Bitcoin’s price is likely to retest the EMA-50 ($23,200) support level before attempting to break out of the range. If the price breaks below this support line, it could move towards the psychological level of $22,000. On the upside, if BTC/USD manages to climb above the $23,500 resistance line, it could test higher levels near $25,000.
BTC/USD 4-hour chart analysis: BTC/USD forms a bearish head and shoulders pattern
The 4-hour chart shows the pair forming a bearish head and shoulders pattern. The left shoulder high is established at $24,440.45 followed by the pattern head at 24,039.21 and finally the right shoulder high at $23,504.81.
Currently, BTC/USD is trading below the neck of this pattern at $23,200 and if it breaks this level, it could target the S2 Fibonacci retracement support level near $21,700.
The Moving Average Convergence Divergence (MACD) indicator is in the bearish zone as the MACD line has crossed below the signal line. The Relative Strength Index (RSI) is currently trading at 35.71, suggesting that BTC/USD is heavily oversold.
Bitcoin price analysis conclusion
Today’s Bitcoin price analysis shows that BTC/USD has been unable to sustain its early month bullish momentum and is now trading near the $23,000 support level. The pair is likely to remain in a tight range before making any notable moves up or down. If BTC/USD breaks below this support line, it could target a psychological level of $22,000. On the upside, if it moves above $23,500, it could test higher levels near $25,000.
While you wait for Bitcoin to move forward, check out our price estimates on XDC, Polkadot and Curve
