Bitcoin Price Falls to $22,100 – Will $21,400 Be The Support Level?

The bears’ strike on Bitcoin has dropped the value of the cryptocurrency, leaving it at $22,014 as of today. The bears’ pressure on the asset indicates that $21,400 could be the nearest support level of the cryptocurrency. Bitcoin’s decline between March 3 and March 6, 2023, has raised eyebrows in the crypto market as they fear BTC may not recover soon.

Traders and investors are concerned about the price fall of the asset in the general market. Irrespective of the current fluctuations, BTC’s technical analysis and price trend can depict upcoming trends for the asset. 

Bitcoin Price Trend

As of January 1, 2023, BTC started at $16,547.91 and reached $17,093.99 on January 9. Despite the persistent fluctuations, BTC has been pushing forward, which caused it to hit $23,108.95 in 17 days (January 26, 2023).

Throughout February, despite the bears’ pressure, the cryptocurrency has been striving not to trade below $23.9k. However, the bears were able to creep into the market, causing BTC’s price to decline. Currently, BTC is trading at $22,428.32 as of March 7, 2023, and has dropped by 1.34% at the time of writing. 

Bitcoin Price Prediction

Bitcoin is down today, March 8, trading at $22,123. BTC price trend has remained in a sideways movement for some days, indicating investors’ indecision towards the asset. But today, the general crypto market fear and greed index is in the fear zone showing that investors now worry about where the BTC price is headed.

BTC is below its 50-day Simple Moving Average (SMA), indicating a short-term bearish sentiment unfavorable to short-term buy trades. The Relative Strength Index is currently at 39.72, slowly moving towards the oversold region of 30, also a bearish signal. For now, there’s no certainty about its movements. Also, BTC’s Moving Average Convergence/Divergence (MACD) is negative, depicting the current bearish trend and emitting a sell signal. 

However, BTC is still trading above its 200-day SMA, indicating that the long-term price outlook is still bullish. Its critical support levels are $21,443, $21,716, and $21,955. The resistance levels are $22,468, $22,741, and $22,981. BTC’s price has fallen below the $22468 resistance level and its most substantial support level of $22,443. Expect a further decline in the asset price in the coming days. 

Note that crypto asset prices usually fluctuate and deviate from predicted price behavior. Therefore sound technical analysis and risk management techniques are necessary before investing. 

Factors Influencing the Price of Bitcoin

Bitcoin primarily depends on a few factors to determine its price trend. Global adoption, market demand, network trends, and investor sentiment could affect the price of all crypto assets, including BTC. Let’s consider some recent developments linked to bitcoin. 

Block’s DIY Mining Kit for BTC Mining Innovation 

On March 7, 2023, Block Inc., a digital payments and financial services firm, announced the development of its MDK (Mining Development Kit) to boost the innovation of bitcoin mining. According to the company’s senior product lead, Naoise Irwin, it aims to develop a DIY kit that stimulates innovation in BTC mining hardware.

? Jack Dorsey’s payments company Block seeks input on mining kit: Jack Dorsey’s Block, Inc has announced that it is seeking input on an ongoing Bitcoin mining project, as seen in a blog post from the company on March 7.
… https://t.co/lI0Uoq1vqO ❤️＆? #Bitcoin #Crypto #Nft pic.twitter.com/AtBhrKO1bu

— Crypto411 (@CRYPT0411) March 8, 2023

Block’s motive to improve BTC mining hardware surfaced after it partnered with the Tesla and infrastructure firm of Elon Musk, Blockstream. It contributed $5,000,000 to model an all-solar mining facility for Bitcoin in Texas. The firm has begun to design its mining semiconductor chips for Bitcoin, called ASICs. 

While the hardware only recorded less than 1% of the total net revenue of Block in 2022, the firm believes there’s a great prospect in enhancing its presence in Bitcoin’s ecosystem.

The development of Block’s DIY mining kit will positively influence the price of bitcoin as it’ll optimize the mining operations of many companies and slash costs. Since Bitcoin’s energy consumption is a significant concern, this mining solution would alleviate several environmental impacts of BTC mining.

The Fading Correlation between Bitcoin and US Stocks

The price correlation between BTC and US stock is fading compared to its high record in 2022. The BTC bulls hope that this dissociation favors Bitcoin, as the current struggles of the US stock market may be a minor challenge for the world’s leading digital asset.

#Bitcoin now trades more like US stocks than at any point since its breakout moment 2 years ago. The upshot: equity market sell-offs like today hurt the crypto currency, as shown in today's bitcoin price action. You can see the math and read more here: https://t.co/iRZXwdOMf5 pic.twitter.com/Q5mMqMeIaB

— DataTrek Research (@DataTrekMB) February 8, 2018

According to the CoinMetrics chart, the 60-day Pearson correlation between the closing price of the S&P 500 and bitcoin’s price crashed to its barest minimum. It dropped to 0.30 as of the beginning of this year, compared to its record since April 2022. As of September 2022, the correlation hit a 0.667 all-time high after rising swiftly earlier in the same year.

The correlation decline between BTC and S&P 500 (the most commonly watched benchmark in the US equity market) inspired the impressive rally of the crypto since the beginning of the year. BTC was up to 35%, while S&P 500 was as far as 4.0%.  

If the correlation between these two assets remains weaker, Bitcoin could rally this year, irrespective of the ongoing gloom in US equities. But Bitcoin’s price decline from its $25,000+ highs has increased concerns about its market profitability. Some worry that BTC could run down to less than $20,000. 

Yuga Lab’s Controversial Auction of its New Bitcoin NFT – TwelveFold

The controversial auction of Yuga Lab’s debut NFT collection ended on Monday with 288 combined successful bidders. They nabbed as many limited pieces, spending up to $16.49 million worth of Bitcoin together.

The TwelveFold auction has ended. Congratulations to the top 288 bidders – you will receive your inscription within one week. Valid bids that did not rank in the top 288 will have their bid amount returned to their receiving address within 24 hours.

— Yuga Labs (@yugalabs) March 6, 2023

Of the 3,246 total bids between Sunday and Monday (24hrs auction), 7.1159 BTC was the highest bid, up to $159,500, while 2.2501 was the minimum successful bid, about $50,000. The top 288 bidders would obtain their inscriptions per Yuga in a week. The remaining 12 pieces of 300 limited series would be allocated to contributors and shared regarding Yuga’s philanthropic projects.

This auction has attracted more attention to the Bitcoin Ordinals protocol, which might boost BTC usage and price in the coming months. 

Bitcoin Alternatives

As the challenge over Bitcoin’s price between the bears and the bulls lingers, there are some alternatives investors can pursue for the time being.

C+Charge (CCHG)

C+Charge is an eco-friendly crypto presale that rewards EV (Electric Vehicle) drivers for paying to charge their vehicles using blockchain technology. Users can use the C+Charge app to discover charging stations, prices, and duration.

Unlike other cryptos or meme coins, C+Charge tokens have a unique utility for a realistic use case. The presale for the token commenced in December 2022, available at $0.018. It has raised over $2.49 million in the presale and will rise in price once listed on crypto exchanges.  

Fight Out (FGHT)

Fight Out’s cutting-edge innovation has revolutionized the fitness industry. Its Move-to-Earn (M2E) program facilitates users’ fitness while earning. The app lets users track their physical activity and access recommended training advice and schedules.

Moreover, the network offers users access to classes, wearable technologies, and a comprehensive exercise experience. The presale for Fight Out has raised $5.3 million, with each FGHT token at $0.02245. Expect the price to increase once the token lists on many exchanges. 

RobotEra (TARO)

RobotEra is taking the gaming niche to the next level with its metaverse ecosystem. The system aims to develop a simulated planet-like metaverse like Decentraland and The Sandbox. In-game opportunities and rewards like NFTs can be accessed with the platform’s native token -TARO. 

Players can access the planet as Robots (NFT characters minted on the ETH blockchain). The presale price to TARO is $0.02. Moreover, the presale has raised to $975,000 since the presale began. Its price will likely increase after the presale stages.

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