Bitcoin Price Dropped to $22,353- Can PMI News Be The Catalyst?

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The frontrunner of the cryptocurrency market has been on everyone’s watchlist this week. The coin started its journey on firm grounds at the beginning of this year, after the lows of 2022. However, it did not perform as pro-Bitcoin enthusiasts had expected and struggled to break out to the other side of its resistance level. Bitcoin’s trajectory took a dramatic u-turn from the high of $25,000 during the previous week and fell directly below the $23,000 mark, and today it fell further below.

Meanwhile, there have been major shifts in the macroeconomics of the world. The first week of March was crucial as many economic data sets were scheduled to be released. From the United States Purchasing Manager’s Index (PMI), and Consumer Confidence Data to China’s Manufacturing Data everything played its hand in influencing Bitcoin’s behaviour.

Let us dive into Bitcoin’s recent price graphs and technical data. These tools will enable investors to assess the situation better and help in their investment decisions.

Silvergate’s News Crashed Bitcoin’s Price Today

Bitcoin was already on shaky grounds this last week. Today, its path was further tipped down by the emerging news of Silvergate’s downfall. The coin is at a crucial junction now which may either make or break its future journey.

Bitcoin is today trading at $22,353. That is around $1000 below its previous day’s value. This indicates a significant drop of 4.257% in the last 24 hours. Yesterday, it was trading at $23,347. The coin saw its 24-hour high at the level of $23,523 and its 24-hour low at around $22,020.

Bitcoin holds a major share of the entire cryptocurrency market with its current market capitalization of $431.6 billion. The coin’s 24-hour trading volume is currently standing at $897.6 million. Its total circulating supply is over 19 million as of today.

Bitcoin’s last 24-hour transaction count has been around 330k, which is lower than its average transaction count. The worth of Bitcoin’s 24-hour value transaction is over $3 billion.

The decrease in its price since yesterday has sparked some serious conversations and investors are now assessing their standing vis-a-vis Bitcoin.

Will Bitcoin recover from this fall? Or it is just a pullback for its next upward move?

Bitcoin’s Price Movement In The Last 24 Hours

24 hours ago, Bitcoin was around the $23,420 level. It maintained a steady position within the range of $23,350 to $23,560 until the late hours of Thursday evening. Its price was still around the $23,407 mark in the early hours of Friday when the coin opened for trade.

However, an hour later Bitcoin witnessed a sharp fall directly below the $22, 350 level. It saw a further drop and landed around $22,113 for a short while. This is quite a dramatic shift in its price within a short duration of 2 hours.

However, it has picked itself up a little bit since the morning and now holding itself around the $22,300 to $22,350 mark. It would be interesting to see how Bitcoin will maneuver itself out of this position as the house rolls by today.

Bitcoin’s Price Graph In The Last 4 Hours

Bitcoin’s price graph in the last 4 hours is offering a better view of its movement today. It started the day with a sharp drop but has gained some strength since then.

BTC’s 4-hour graph shows three high peaks. All of which are within the range of $23,400 to $23,425. This shows that a strong resistance level is building around here and the coin may struggle to break out from here.

On the other hand, the support levels for the coin are building below the $22,350 mark. The three clear support levels are forming at $22,335, $22,342, and $22,346.

These levels are significantly lower than yesterday’s trading price. This drop may encourage some bullish views to buy some coins which then may drive its price up again. However, if investors with a bearish outlook start to sell, the coin may drop and make it’s way below $21,900.

The recently released US Purchasing Manager’s Index may give some cue on why Bitcoin price is fluctuating this week. Let us see what

How Does The Purchasing Manager’s Index Affect The Cryptocurrency Market?

The United States PMI scores for February were set to release this week.

PMI offers crucial details regarding the economy’s current growth rate and trends. It is an important tool for analysts and economists to study the economic performance of a nation. In addition to that, PMI also offers insight into the future turn of events in the financial market and the cryptocurrency market.

When a PMI score is lower than the estimated score, it signifies that economic growth has been slower. This causes the dollar value to drop, which causes the digital asset market to go up.

On the other hand, when the PMI score outperforms its estimated value, it means that the economy has been robust. This leads to an increase in the purchasing power and value of the US dollar. This causes volatility and fluctuations in the cryptocurrency market.

Can PMI News Be The Catalyst to Bitcoin’s Next Move?

The US PMI for the manufacturing sector came out on the 1st of March, 2023. According to the report, February’s score is 47.3. It is lower than January’s score of 48. The score this month is the 4th month since June 2022 which indicates a downtrend.

This indicates that the economy is still struggling to keep up with the projected growth. This will cause the dollar value to lose, which in turn lead Bitcoin to gain some momentum on the 1st of March.

The US PMI for the service sector came out yesterday (3rd of March, 2023). The service PMI points for January were around 46.8. The service PMI points for February is around 50.5. This is a significant surge of around 7.9%.

This increase indicates that the economy is doing well in the service sector. This has caused the US dollar to gain, which may have caused the sharp drop in Bitcoin since this morning.

While there is a drop in manufacturing PMI of around 1.459%, there is a chance that this will be negated by the growth of its service PMI of nearly 8%. This will cause some unwanted fluctuations in the cryptocurrency and whose ripples will be largely felt by Bitcoin.

Last Words On Bitcoin

Bitcoin’s current volatility is around 3.9% which is considered medium. Its market sentiment has been consistently bearish for the last few days now. This indicates that there is a low demand for the coin at the moment. If the coin’s position remains unchanged, then this may further encourage sellers to give up their share, which will drag its price further down.

BTC is currently performing 65% below its all-time high. In the last year alone, it has seen a drop of almost 50% in value. Currently, it is also being outperformed by the second strong contender in the cryptocurrency market- Ethereum. In comparison to Ethereum, Bitcoin is down by more than 4%. Experts believe that it may continue to be around the current price level for the next few days.

Amidst these growing uncertainties, it is better to be wary. While investment in Bitcoin for the long term gives lucrative returns, it may not be the case for short-term gains. Investors are advised to consider every economic aspect that influences the market before making any major decision.

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