Bitcoin Price Pulls Back to $24,000, Will it Recover From Its Losses?

Updated: 22 February 2023

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Bitcoin retraces from the previous days’ gains by around 2.8%. The token had a bullish run until the 21st of February, and the price saw an increase in value up to even $25,000. The sudden retrace was unexpected and has created questions about Bitcoin’s next move.

A close-up look at Bitcoin’s prime price indicators could give some valuable insight into the token’s future performance.

Bitcoin’s Behavior in the Last 24 Hours

Today, Bitcoin’s price was $24,122 at the time of writing this article. In the last 24 hours, it has plunged by around 2.8%. The low of the last 24 hours is around $23,918. The high of the last 24 hours is around $24,798.2. There has been a hike of around 5.5% in its trading volume, which is currently at $31 billion.

Bitcoin faced a bit of a hurdle in the last few hours. In the early hours of 22nd February 2023, its price dropped from $24,310 to $24,080. It rose back again to above $24,000, but this hike was short-lived, as the price plummeted again below $23,500 this time. The price movement is extremely volatile today for Bitcoin. The price graph from late morning to now shows a trend of lower low. Which usually means that its price may drop further down.

Bitcoin’s Price Equals the Previous Support Level

The cryptocurrency market is volatile, and prices always fluctuate beyond technical predictions. Even though Bitcoin is the largest cryptocurrency by its massive market capitalization, it is not safe from the undoings of the crypto market.

Earlier today, due to Bitcoin’s price moving down, the global cryptocurrency market saw a drop of more than 2.5%. This drop negated all the previous price surges of the week.

It is interesting to note that Bitcoin is currently almost at par with its previous high support line of $24,120. However, there may not be strong demand at this level today to hold the price here. According to expert analysis, investors may wait to buy BTC at the moment.

What Are Its SMA and RSI Indicating At?

According to market analysis, Bitcoin’s current volatility is around 3.8% which is considered medium. This means that BTC’s price will not move quickly at the moment. This will ensure a little bit of steadiness in the movement.

The market sentiment is slightly bearish. BTC’s 50-day SMA is currently at around $21,649, which is still higher than its 200-day SMA of around $19,698. Although it is indicating a ‘golden cross’ as predicted previously, it may not be an ideal time to invest in Bitcoin right now. BTC is currently trading above its 200-day SMA. However, its current price is below the 50-Day SMA.

Generally, when the price of an asset is far below its 50-day SMA, it signals an impending bearish movement. However, at this moment, BTC’s price is only slightly below its 50-day SMA, so it is not definite yet that its price will drop further below.

This is further emphasized by BTC’s 100-day SMA, which is around $19,200 and still well below its 50-day SMA. This means that a price trend to the downside is not confirmed yet.

Bitcoin’s 14-day Relative Strength Index is around $66, which indicates that the BTC market is in a neutral position.

Bitcoin’s Past Price Trend

Although Bitcoin’s current price dip has dampened the mood for the majority of the market, it is important to note that this token has its strength. Bitcoin has shown tremendous resilience throughout the past decade. This indicates that in the long run, it is moving towards more heights.

When Bitcoin was initially launched by Satoshi Nakamoto in the year 2008, nobody expected this new digital asset to take the world by storm. When it was officially launched in the year 2009, one token was sold for $0.0009. Soon after, it increased in value by 10000 times when in 2011 when the price creased to $30 per BTC.

Due to the first halving event that took place in the year 2012, BTC prices further increased. The next year, Bitcoin’s market capitalization grew to a massive $ 1 billion, and with it, the price of one token surged over $1000.

In the year 2016, the second halving occurred, and its price further shot up to $20,000. A growth of about 95% since 2012. After the pandemic, when BTC’s third halving took place, the price skyrocketed, breaking all records and landing at $40,000.

Bitcoin’s price has followed a similar trajectory in the last 3 halving events. Interestingly, Bitcoin’s fourth halving is set to happen in early 2024. This is sure to take its price to newer heights. This could essentially mean that investing now could give long-term profit in the year 2024.

Is it a Good Idea to Invest In Bitcoin Right Now?

Cryptocurrency advisors are divided in opinion right now. The market is only slightly bullish, so some predict that the price will recover in the next two days and will start to regain its previous level of above $24,500.

However, a strong opposition believes there is not much demand for Bitcoin at the current level. If the price drops below, it will create demand, and people will rush in to buy the token. So, there is a possibility of a slight drop again before it eventually starts to rise.

The cryptocurrency market is volatile and tends to change daily. Investors are strongly advised to keep an eye out for any changes in macroeconomic conditions and the token’s previous price cycles. If the disinflation continues, however painfully, the price of BTC will gain momentum. However, if inflation peaks again, the Feds’ inflation control measures could trigger a downward trend for the crypto market.

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