BTC: Hold the support line, can you challenge 25,000 again?

Last week, although the development of the US dollar and risk appetite was beneficial to Bitcoin, the negative events that occurred within the cryptocurrency market impacted its performance. Technically, Bitcoin has temporarily held onto an important support line since January, and it remains to be seen whether it will rebound or break down this week.

Cryptocurrency market encounters another black swan event as Bitcoin continues to pull back.

Last week, the US released economic data that was mixed, causing the dollar to enter a phase of oscillation and pullback. Durable goods orders in January recorded a monthly rate of -4.5%, worse than the expected -4%, marking the largest decline since April 2020. The February ISM Manufacturing PMI recorded 47.7, lower than the expected 48, but the ISM Services Index recorded 55.1, stronger than the expected 54.5. Both PMIs suggest that US inflation may be more sticky than expected, which could support the future outlook for the dollar's trend. However, in reality, the US dollar index recorded a drop of nearly 0.7% last week.

Despite the positive developments in the US dollar and risk appetite, Bitcoin's price was unfortunately hit by negative events in the cryptocurrency market last week. According to reports, the cryptocurrency bank Silvergate announced that it would postpone submitting its annual 10-K report for the 2022 fiscal year, stating that "the company is currently analyzing certain regulatory inquiries and investigations related to the company." Shortly thereafter, many cryptocurrency companies and trading platforms, including Coinbase, Circle, and Tether, urgently announced that they would cut off business dealings with it. This news triggered a wave of panic in the cryptocurrency market, putting pressure on Bitcoin's price.

This week, there are many risk events, including Powell's congressional testimony and non-farm payroll data, which could cause major fluctuations in the dollar and US stocks, and may provide guidance for Bitcoin's price trend.

Technical analysis of Bitcoin's price trend: watch for opportunities for rebound from the support line

The daily chart shows that Bitcoin's price fell sharply last Friday, breaking below the range of 23,000 to 24,000, and is currently holding steady around the upward support line of 22,000 since January 18, presenting an opportunity for a rebound correction. If it goes up, the initial resistance is focused on 23,000, and further resistance is focused on the 20-day moving average range of 23,600 to 24,000, with a chance to challenge 25,000 if it breaks through. However, if it effectively falls below 22,000, it may face greater downside potential, with further support areas potentially being at 21,500, 20,000 to 20,500, among others.

BTCUSDT BTCUSD BTCUSD

Trade active

Trade active

Trade active

Trade active

Trade active

Trade active

Trade closed: target reached

Trade active