Yesterday, after the opening of the stock market at 6 pm Tehran time, the price of Bitcoin faced increased volatility and was able to touch the resistance of $21,500. Bitcoin has maintained the $21,000 price level for the fourth consecutive day. But will last week’s stunning rally continue or is it time for a price correction?
According to Mihan Blockchain and quoted by CoinDesk, the price of Bitcoin fluctuated slightly on the eve of the reopening of the stock market trading in the United States at 6:00 pm on Tuesday, and during these fluctuations, it reached the resistance of $21,500, which is the same as the previous price peak. From the beginning of the FTX scandal, it was touched. The price of BTC has stubbornly held the $21,000 level for the past 4 days, showing no desire to correct the price after last week’s stunning run that saw the price gain more than 22%. At the time of writing, the current price of Bitcoin is $21,256.
JJ Kinahan, CEO of IG North America, said of the recent developments:
It’s surprising that BTC price is now struggling with the $21,500 resistance. This price growth is related to the improvement of sentiments in the stock markets and we see that the risk appetite in the market has increased. In my opinion, the price of Bitcoin will rise to reach the level of $22,500, which is its serious resistance.
US stock markets were relatively flat after opening yesterday. The Nasdaq was up slightly, but the Dow Jones Industrial Average (DJI) and the S&P 500 were lower. The release of the fourth quarter performance report of financial giants Goldman Sachs and Morgan Stanley, which showed a decline in profits, was the main reason for the negative market sentiment. These majors were the first to report Q4 2022 performance, and others are expected to fare similarly or worse.
Silvergate Bank’s report also reminded of the very difficult conditions of the digital currency market. A report by this key bank in the crypto space, published on Tuesday, approx $1 billion net loss It showed 2022 in the fourth quarter.
A report from Arcane Research also called last week’s crypto market conditions “remarkably strong and buoyant,” but cautiously added that “in the short term, the bullish momentum appears to have been overextended.” Arkin noted:
Last week we saw seven green candles in a row on the Bitcoin chart, the first since March 2022, and the RSI is extremely high, indicating that Bitcoin is in “overbought” territory. The recent price increase was mainly the result of short squeezes. The rise above $20,000 has been accompanied by stabilization of open volume (OI), indicating that bearish traders have become cautious. This may lead to price stability in the short term.
Further today, the analysis of such blockchain homeland of the state of the crypto market will be published and its link will be added to this article. Users can read this analysis for a more detailed examination of the market situation and upcoming developments.