Crypto Markets 2/3 CHK: Bitcoin Still Likely To Break The $23,750 Resistance

Crypto Markets 2/3 CHK: Bitcoin Still Likely To Break The $23,750 Resistance

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2023-03-08 16:13:39

Bitcoin’s price has been consolidating below significant resistance in recent weeks after repeatedly failing to break it to the upside.

Cryptocurrency Market

Bitcoin’s current trading price is $23,450, with a 24-hour trading volume of $22.8 billion. In the daily timeframe, Bitcoin is down 1.29%. It currently has a market capitalization of $452 billion.

Bitcoin price movement in the last 24 hours

The technical outlook for the BTC/USD pair remains largely unchanged, with Bitcoin continuing to consolidate below the $23,750 resistance, while maintaining immediate support at $22,800. If the price drops below this level, Bitcoin can find support at $22,150.

Despite being in the oversold zone, there is still a chance for the BTC/USD pair to recover, which can help the price break through the $23,750 resistance and push the price up to $24,250.

On the daily chart, Bitcoin price has been rejected by the key resistance at $25K several times in recent times. Currently, the 50-day moving average (MA) is located around $23,000, providing support and could push the price up to test $25,000 again, with a bullish breakout having many more likely to happen.

Conversely, if the price slips below the 50-day MA, a 200-day MA that tends to hover around the psychological $20,000 level could come into play and prevent any further decline.

On the 4-hour timeframe, the recent swings become much more apparent. The price fell to the $22,500 support after being rejected by $25K, with the support successfully preventing further declines.

Currently, the cryptocurrency seems to be targeting $25K once again, and the probability of breaking through this zone is higher than before if the price can reach it. On the other hand, in the event of a deeper pullback and a drop below $22,500, the $21,000 level would be the next area to watch.

The RSI is also showing values ​​above 50, indicating bullish momentum in this time frame, making the positive scenario more likely.

On the altcoin side, ETH is still holding above the $1,600 mark with a 2.3% gain on the day. However, it is not the leading altcoin in this rally. Conflux (CFX) and Maker (MKR) are recording double-digit gains of 19% and 16.5% respectively over the past 24 hours, outperforming the rest of the market.

Volatility of the top 10 tokens by market capitalization

The reason Conflux has achieved this achievement is due to the special attention from China’s second largest wireless network giant, China Telecom, when the two joined hands to develop blockchain-enabled SIM cards, which were approved by China Telecom. called BSIM. In addition, one reason CFX has maintained its recent uptrend is that Conflux has received a $10 million investment from DWF Labs, a well-known digital asset market maker and Web3 investment company. stage.

Meanwhile, the reason MKR is bullish is because of MakerDao’s latest move in setting a debt ceiling to fund Aave to 5 million DAI. The rest of the bullish altcoins are currently seeing returns ranging between 0.5 – 10% over the past 24 hours.

Of course, there are a number of altcoins that are going against the overall uptrend in the market and recording small losses on the day, ranging between 0.4 – 4%, and the biggest declines are Lido DAO’s LDO and Klaytn’s KLAY. with the same loss of 4%.

Investor sentiment remains in the neutral zone with the crypto greed and fear index at 51.

Macro factors

The US stock market fell on Wednesday (March 1), as investors struggled to recover from the February sell-off and as bond yields continued to climb. Crude oil prices added a slight gain on expectations of the improvement of demand in China.

At the close, the S&P 500 index fell 0.47% to 3,951.39. The Nasdaq index slid 0.66% to 11,379.48 points. Particularly, the Dow Jones index increased slightly by 5.14 points, closing at 32,661.84 points.

Downward pressure on stock prices remained strong as US Treasury yields maintained their February gains. 10-year yields at one point surpassed 4% for the first time since November, while yields on of 1-year term exceeds 5%. The upward trend in yields reflects the expectation that the US Federal Reserve (Fed) will have to prolong the rate hike to combat inflation.

This decline comes after Wall Street’s stock price dropped sharply in February. If counted from the beginning of the year, the Dow Jones is in a down state, while the other two major indexes have kept some of the results. increase was achieved in January.

In a statement on Wednesday, Minneapolis Fed President Neel Kashkari said he was “open to the possibility” of raising rates with a larger jump at this month’s monetary policy meeting. “Maybe it’s 0.25 percentage points or 0.5 percentage points,” Kashkari said, but said no concrete decision had been reached.

“We are in a period of volatility, as central banks step into the deceleration of the rate hike cycle and wait and see what effect the rate hikes already have on the real economy,” he said. William Northey of US Bank Wealth Management commented on CNBC. “Market performance in the first two months of the year was mainly influenced by minor changes in expectations about the path of monetary policy in 2023.”

Mr Northey added: “We think the environment for bonds will improve in the near future, but the world and US stock markets will continue to struggle in two directions, as investors mull over health. of consumers and business operations”.

This session, the market initially received a boost from China’s better-than-expected data. The country’s General Statistics Office said the official purchasing managers’ index (PMI) in February rose to 52.6 points, the highest since April 2012.

The data reinforces investors’ hopes in the crude oil market about a pick-up in oil demand in China, the world’s second-largest economy and biggest crude importer. world. However, oil prices remain under pressure from signs that oil supplies are plentiful, including a build-up in inventories in the US.

At the close, the price of Brent crude oil futures on the London market increased by $0.86/barrel, or 1%, to settle at $84.31/barrel. WTI oil futures in New York rose $0.64/barrel, or 0.8%, to $77.69/barrel.

US government data showed US crude inventories rose by 1.2 million barrels last week to 480.2 million barrels, the highest since May 2021. The increase exceeded analyst expectations and marked the 10th consecutive week of increase in commercial oil inventories in the US.

“As long as the inventories at the US oil port of Cushing do not decrease, oil prices are unlikely to break out,” Jim Ritterbusch, president of the consulting firm Ritterbusch and Associates, told Reuters news agency.

In another sign of the abundance of oil supplies, Russia’s oil production in February reached levels for the first time in February before the country’s oil industry was subject to Western sanctions, according to reports. from the Kommersant. A Reuters survey also showed that oil production by the Organization of the Petroleum Exporting Countries (OPEC) increased in February.

“The Chinese economy is recovering, and this can only be a positive factor for oil prices,” said Stephen Brennock of oil brokerage PVM Oil. However, he also stressed that the abundance of Russian oil supplies will put downward pressure on oil prices.

According to the plan implemented from this March, Russia will cut oil production by 625,000 barrels per day. However, analysts say that it is not clear how this cut in Russian oil production will affect oil prices in the near future.

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