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In light of the current slump, Bitcoin price action needs a big push over its barrier to affirm a continuation of the positive trend that started in early 2023. During the weekend, Bitcoin underwent a correction that sent its price down below $23,000.
Recently, Bitcoin has maintained its price over $22,700, halting any price falls. BTC has been on an upswing since January, but it has just had a correction to low levels, falling below $22,700. Bitcoin gave up to the pressure of sellers.
According to statistics from Coinglass, about $200 million worth of positions have been liquidated since February 22nd due to the present price action of BTC and the uncertainty around the direction of the biggest cryptocurrency’s future move.
The current favorable correlation between Bitcoin and the U.S. dollar, as assessed by the DXY Index, and how this might fuel the next bull trend for Bitcoin were both discussed by data and cryptocurrency analyst CryptoCon in a post on Twitter.
The significant connection between the DXY and BTC following the bear market in 2022, according to the researcher, indicates that the bull market is in full swing. This association happened twice before Bitcoin rallies in 2011 and 2015, respectively. The 2019 surge, as seen in the chart below, marks the fourth instance in which the correlation suggested the start of a fresh, fully developed bull market.
Since the beginning of the cryptocurrency industry, the DXY index has been recognized to correlate with changes in cryptocurrency prices. The recent connection has changed from negative to positive as the DXY index, like Bitcoin and Ethereum on their own charts, corrects below its yearly high of $105. CryptoCon added that Although falling, Bitcoin is still well-positioned for further bull market gains. The market structure now resembles the spike in November 2015 before the Bull Market, very different from that of July 2015. Here are some of the finest cycle purchasing prices for bitcoin, which is now in an upswing.
The recent price reversal in BTC, which was anticipated to be a solid support near the $23,500 mark, has created a new wall of resistance for the leading cryptocurrency.
Bitcoin price movement might increase liquidity at greater levels if it keeps eliminating short and long positions while moving sideways. The important resistance of $25,000, which for experts is the last barrier for Bitcoin as it looks prepared to reach the milestone of $30,000 in the medium term, might be broken if BTC is able to overcome the next resistances of $23,500 and $24,000.
Bitcoin is currently trading below the crucial support that was lost over the weekend with the pullback to $22,700, near the $23,300 mark. Due to the recent price decline, Bitcoin’s 24-hour gain was only 0.7%.
On longer time frames, the price of BTC saw a drop of -3.9% in the seven-day period but managed to retain gains of 7.1% and 1.1% in the fourteen and thirty-day periods, respectively.
