Today’s Saturday offered crypto investors the chance to take a short breather. There was bad news from USDC, since the publisher Circle held part of the reserves at Silicon Valley Bank. After the disclosure, the stablecoin decoupled from US parity. However, USDC was able to recover somewhat during the day and is currently trading at least above $0.95 – only 5% below the target value. However, if we look at the Bitcoin price development, it will be a little quieter over the weekend.
Because after the dramatic sell-off in a few days and almost double-digit losses on a weekly basis, BTC is currently more than 2% in the profit zone. This puts bitcoin back above $20,500. However, the moderate recovery in the last few hours is not a final decision. A continuation of the correction does not seem improbable in the basic scenario. For more hope, the Bitcoin should confirm the recapture of $ 20,360 at the daily closing price and, at best, quickly jump over $ 20,670 again. Not far from this price mark, Bitcoin also marked the historical high on the last trading day. The first test thus failed.
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Bitcoin Price Today: Moderate Recovery, Solid Volume – Technical Price Targets
In the past 24 hours, the Bitcoin price has recovered by around 2%. The weekly losses are still around 9%. Bitcoin traded between $19,897 and $20,680. Trading volume hovered around $30 billion, according to data from CoinMarketCap, down around 25% compared to yesterday.
The Bitcoin price has recovered significantly in the meantime. However, after testing the resistance level around $20,670, bitcoin price bounced lower with strong selling pressure and even briefly dipped back below $20,000. The price level remains relevant at around $19,800. Afterwards, the multiple support level at $19,110 to $19,350 in particular should show the way in the short term. If the Bitcoin bulls cannot regain their interpretative sovereignty here either, a test of $18,400 would be likely.
On the other hand, the first hurdle for bitcoin is at the resistance level around $20,360. If bitcoin bounces above this level and then struggles above $20,670, the recovery could continue. Buying pressure may be enough to then push the price back towards $21,400. If the uptrend continues, there is also a chance that Bitcoin will even reach $25,000 again. However, retailers should currently orientate themselves towards the south.
Bitcoin price forecast & psychology: The bulls should definitely defend this price mark
Psychological price markers are important in trading because they have emotional meaning for market participants and often act as support. These brands can trigger a strong buy or sell reaction as traders have confidence in these brands based on their perception and history. Therefore, psychological price levels can serve as useful indicators of potential trading support or resistance.
The $20,000 level is of great importance for bulls from a technical and psychological point of view. This level was the peak of the 2017 bull market and was recaptured after a temporary loss in the FTX crash in early January. Holding this level would be a positive signal and a retracement could quickly wipe out the chances of a new uptrend.
Should you invest in Bitcoin now?
There is no doubt that a strongly negative news flow is currently dominating Bitcoin. Hardly a day goes by without potentially price-sensitive news putting selling pressure on the world’s most valuable cryptocurrency, although a closer look reveals bitcoin’s potential all the more.
US crypto bank Silvergate announced last week that it was voluntarily going into liquidation after many major crypto companies went out of business. The US economy and persistent inflation suggest that tighter monetary policy is becoming more likely, which in turn is fueling increased uncertainty among investors. The Mt.Gox scandal is still affecting the crypto market – after all, more bitcoins could soon be flooded onto the market. Meanwhile, the SEC has ramped up its fight against crypto service providers. The Silicon Valley Bank has now uncovered a significant capital shortfall and has been closed by US authorities. As a result, stablecoin USDC decoupled from parity to the US dollar.
In the short-term, traders will wait for Bitcoin to sustainably reclaim the level around $20,670. One could become more bullish if the daily closing price of $21,400 is also confirmed. In the long term, bitcoin remains in a historically attractive buy zone.
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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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