Once again, the broad crypto market experienced a turbulent trading day. After initial losses, the digital currency market was able to regain its footing and is up around 1%. The Bitcoin price was able to gain 0.5%, trading in a wide range in the last 24 hours. At the time of writing, bitcoin is hovering near the $24,000 price limit. Trading volume, on the other hand, was little changed in the past few hours, standing at $30 billion, according to data from CoinMarketCap. But a stronger resilience of Bitcoin gives hope for a bullish price forecast for the next few weeks. What Should Bitcoin Traders Know Now?
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Bitcoin Price Today: Wide Trading Range, BTC Struggles at $24,000
In the past 24 hours, Bitcoin has traded between $23,658 and $24,631. BTC is currently hovering around $24,000. This means that Bitcoin recorded slight losses of around 1.5% on a weekly basis, but the Bitcoin price was still able to increase by around 4% in the past month. After the high for the year at $25,200 could not cause a continuation of the trend for the time being, the breakout failed. The support at $23,825 has not been able to hold continuously lately, but remains crucial to prevent a further sell-off. So as long as Bitcoin remains in the current technical no man’s land, traders could be relatively unconcerned. A dip below $23,300 would be strongly bearish.
Interest rate fears return: Stocks correct, Bitcoin decouples from the S&P 500
Interest rate fears have already returned to the stock market in the past few days. It is possible that the probability that the Fed would soon resume easing interest rates had already been overestimated in January. After all, the central bankers have repeatedly stated the opposite. The minutes of the last FOMC meeting now also show that almost all members of the central bank advocated a rate hike of 25 basis points. The Fed Minutes reveal broad unity as far as the rampant risk of inflation is concerned. Still, many coins and tokens recovered shortly after the data was released. The formerly strong positive correlation between BTC and stocks turned into its opposite.
The question now is whether the correlation is really decoupled for the time being. Are investors becoming repeatedly bullish and increasingly turning their attention to the long-term potential of cryptocurrencies?
Bullish Bitcoin price forecast: These are possible price targets
The first clear corrective movement in the current year was bought. The Bitcoin price has immediately recovered to new historical highs. The last corrective movement could also represent a buying opportunity for the time being.
If the bulls come back and continue the price trend, the price level around $24,270 should be targeted first. Subsequently, the $24,850 price mark could be reached before the multiple resistance level around 25,200 to 25,300 is the relevant price target.
Here the bulls are likely to have difficulties again in reaching a new historical high in 2023. If this succeeds, the target price of $28,750 to $29,250 could be announced relatively quickly after a breakout above $26,500, before the psychologically important limit of $30,000 may fall in the first quarter of 2023.
Bearish Bitcoin price forecast: Bitcoin could fall so low
If the support zone of $23,825 already shown is undercut and a double top in the weekly chart generates a technical sell signal, a downward correction could expand. Bitcoin would then initially drop to around $23,300. On the downside, $22,600 would be the next price target. The return to last week’s consolidating sideways range would initially be a chance to turn things around again. However, if the Bitcoin price falls to around $22,300, the low from February could be reached again. At the same time, around $21,600-21,700 is the daily MA200 as well as the long-term downtrend.
Should you invest in Bitcoin now? A correction is at least not unlikely
A technical chart decision is pending. Above $23,825, downside risk seems limited, at least for now. The transaction volume has recently remained low. At the same time reveals a Glassnode report also that such lows in the transaction volume in the past regularly caused a significant sell-off or a significant correction. Bitcoin could be fundamentally overbought in the short term. Although this does not point with complete certainty to a bearish price development. Nevertheless, despite an increasing decoupling of the macro economy and the stock market, one should also be aware of the short-term downside. Because it is still difficult to evaluate with certainty whether we are already in the next bull market.
At the same time, the positive price development in January 2023 seems to be primarily due to a shift in the digital currency market. Instead of fresh capital, stablecoin holders may have preferred Bitcoin as a stable asset again after the FTX crash, according to the crypto analysis service Santiment.
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Author: Daniel Robrecht
After studying law and management, Daniel decided to work as a freelance author and has been writing qualitative publications on various specialist topics for around 10 years now. As an investor, he gained years of experience with stocks & cryptocurrencies. In addition to a long-term investment approach, Daniel is also passionate about short-term markets. Through targeted further training at international universities, he has acquired extensive knowledge about the capital markets, stocks, cryptocurrencies and decentralized finance. Daniel’s primary focus is on general market trends, exciting stocks, business news and the digital currency market. In his private life, too, there is never a day without the financial markets. As an author, Daniel writes for leading German-language publications in this field. Daniel publishes for Finanzen.net, among others, Business2Communityand FXStreet.de. Daniel on LinkedIn.
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