Bitcoin Price Moves Up to $23,400- Are We Marching To $25,000 in March?

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The month of February has been truly tumultuous for the king of the cryptocurrency world- Bitcoin. What initially looked like a resurgence of the coin in the middle of this month turned out to be a leverage point for its sudden fall.

Today Bitcoin is trading at around $23,403. There has been a hike of around $135.2 in its value which account for a 0.59% increase in the last 24 hours. Bitcoin’s current market capitalization stands at over $451 billion in value. Its 24-hour trading volume currently stands at around $897 million.

Bitcoin’s price performance in the last two weeks puts big questions in the mind of investors. In addition to this, there is a looming fear of inflation which may turn the entire cryptocurrency market volatile. Amidst these recent developments, people are concerned about Bitcoin and want to know where it is heading from here.

Let us see if Bitcoin’s past indicators offer an insight into its future.

Bitcoin’s Performance In The Last Month

Over the last 30 days, Bitcoin’s price swung within the range of $21,500 to $25,060. However, its most touched rate is around the $24,000 mark. It is also interesting to note that, it had moved up from its 30-day low of $21,500 to a 30-day high of $25,060 within 72 hours, i.e after three days.

This may have been caused by the fact that when the price dropped buyers rushed in to buy, which in turn drove the price back up soon. However, Bitcoin could not survive at $25,000 and moved closer to the $24,500 level.

Bitcoin’s Performance in The Last Week

Bitcoin’s price graph over the last 7 days is looking pretty grim. The graph predicts a clear downward trend with a short upward movement in the middle. The price of one token at the start of last week was at $24,900 and during the week came down to the opposite end at $23,403. This indicates a decrease of at least 6%.

The 7-day high for Bitcoin was seen at the start of last week when it was rallying at around $25,027. The lowest point over the last 7 days for bitcoin was witnessed over the weekend when it dropped to the $22,900 mark. It was driven by the PCE Price Index which now rose to 5.4%. However, Bitcoin took off soon after and reached the $23,300 mark.

Is Bitcoin Marching To $25,000 in March?

Despite the speculations, Bitcoin was not comfortable at around $25,000. Its price had a swing back after the 30-day high of $25,000. It dropped back to the $24,700 level. This accounts for around a 0.8% decrease in its price. The concerning news after the minutes of the FOMC meeting was released caused Bitcoin’s price to drop further.

Bitcoin’s price of $25,000 was the highest mark in its price over the last six months. It has gained tremendously since the end of Q4 of 2022.

Investors in support of Bitcoin believe that the current price drop will usher in more buyers. This result may take Bitcoin to the maximum high of $27,176 in March 2023.

Bitcoin’s 50-day moving average today stands around $20,713. Whereas, its 200-day moving average stands around $20,923. Based on these figures, BTC’s current price is above the 50-day and 200-day SMA which indicates a possible uptrend in the market.

BTC’s current Relative Strength Index is around 56%. This means a neutral level between the bullish and bearish movement.

Another reason that could drive Bitcoin’s price is the schedule of its 4th halving in early 2024. Bitcoin’s historic price trends indicate that its price has reached unprecedented heights after each halving event. Thus, Bitcoin enthusiasts are optimistic about a bull run in the future.

The Bearish View on Bitcoin

In light of the increase in the PEC price index to 5.4%, there are speculations that the cryptocurrency market will continue to be highly vulnerable. Technical experts believe that the price of Bitcoin may drastically fall in the coming month. They are championing that Bitcoin’s recent downfall is a bull trap and it may force the market participants to exit with sudden losses.

Bitcoin is indirectly related to macroeconomics. As per experts, the recent rise of interest rates in the US economy will cause Bitcoin to fall further below in the year 2023. The cryptocurrency market may also be affected if the U.S. Fed and other leading banking agencies decide to put the cryptocurrency market under strict scrutiny.

In addition to this, US Fed and banking agencies also expressed concern about the cryptocurrency market threatening to cause instability in the US economy. This was due to the collapse of a good part of the industry since 2022 due to corruption, bankruptcies etc. It is believed that lack of proper regulation cause these downfalls. Thus, the US gov may look for ways to strengthen the monetary policy. Which may drag Bitcoin’s price further down.

Summation on Bitcoin

Bitcoin and the entire cryptocurrency have experienced a volatile week. Price trends have left investors in dismay. On top of that, there surfaced news about an increase in interest rates and the possibility of tighter monetary regulation. All these factors stand to affect the cryptocurrency market a lot.

The market is currently divided on Bitcoin’s future performance. If BTC breaches its current resistance of $23,500, it may rebound a bit until the $24,000 level. If buyers start to buy out, it could drive BTC’s price further up and encourage a bullish run.

However, if BTC stays around the $23,400 mark or drops below this might cause great discomfort to those who hold BTC. If they decide to sell it out to cut their losses in speculation of a bearish run, it can create pressure on the markets to drop further below.

Investors looking to invest may direct their search to other tokens which show signs of stability. There are a lot of Bitcoin alternatives available in the market.

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