The cryptocurrency market, which has the better part of the investing world in its clutch, is known for its volatile tendencies. Bitcoin, despite being the consistently top-performing asset in the crypto world, is known for its fluctuations over the years.
The price of Bitcoin today is $21,854.50. Over the last 24 hours, it saw a decrease of $800 in its price. Which signifies a drop of 3.4%.
The investors and corporations in the crypto world wait with anticipation with their eye definitely on the Bitcoin price graph. Will Bitcoin recover from today’s price, or will it hit head back to $21,000?
Let us adopt an analytical look to break down Bitcoin’s behavior these past few days.
Bitcoin’s behavior in the last week- A critical take
According to the crypto-markets latest statistics, Bitcoin’s total supply is around 19.28M, while the max supply is at 21M. Bitcoin’s 30D volatility is at 0.51. The token’s 24-hour value transaction is over $2 Billion. And the 24H transaction count is 363,667.
Bitcoin’s overall price graph since July 2022 shows a rugged gain tendency. Despite the frequent sharp slumps, the graph projects a slow increase in Bitcoin’s price over the last month.
At the beginning of this month, the price of bitcoin was $23,723.8. In the duration of the entire last week, the price of Bitcoin was above $23000. However, at the start of this week, on the 6th of February, 2023, we saw a drop in Bitcoin’s price when it hovered around $22,700.
In the middle of this current week, Bitcoin’s price again surged. This time, its price skyrocketed above $23,000. The increase was due to Jerome Powell, the Chair of the US Federal Reserve, comment on inflation. He mentioned that inflation is coming down, albeit a slow painful way, at an economic forum in Washington.
However, the sweet peak of $23,000 was short-lived. The price again came crashing down, and this time around $22,000.
The last 24 hours high was around $22818. The last 24 hours low was a couple of points above $22500. This fluctuation in its price has left the total market capitalization of the token at $421.5 Billion. Currently, Bitcoin’s 24-hour volume stands at $716.04 M.
World numero uno- Bitcoin, facing a possible downswing
Bitcoin had a tremendous bull run in the year 2021. In the year 2022, Bitcoin’s price remained mostly consolidated throughout. However, the beginning of 2023 witnessed a movement that managed to tilt the needle toward a bullish sentiment. The crypto market had expected that the bullish behavior would keep the price of Bitcoin surging throughout the year.
However, recent events and the downfall affecting the crypto-market may have shaken things for the most beloved contender of cryptocurrency. The price of Bitcoin has dropped below $22,000. And there’s only one question in everyone’s mind- will the volatile movement slash its price below $21,000, or will it swing back over $23,000 again?
The numero uno cryptocurrency has been rejected from the $23,000 zone and is currently at below $22,000. The 8-Day EMA (Exponential Moving Average) crosses over the short-term 20-Day SMA (Simple Moving Average), which suggests a volatile downward spiral.
This contradicts the previous prediction of Bitcoin by crypto analysts around the world. When the price of Bitcoin touched the “golden cross” on the 6th of February, the market witnessed a bullish tone. The “golden cross” is usually a promising factor that made investors buy the token.
According to Bitcoin’s price graph, when its price was at $23,296, the number of transactions at the Toronto Stock Exchange was around 344.34K. However, soon Bitcoin price fell below $23,000 and came down to $22,370. An interesting thing to note here is even though its price dropped, the number of transactions increased to 369k.
Does it imply that even though there was a notable slump, the majority was silently hoping for a bullish rise?
Does RSI hold any answers regarding Bitcoin’s faith?
The Relative Strength Index is a valuable tool in determining the course of cryptocurrency’s price graph. Previously, when the price of Bitcoin started climbing into the $20,000 zone, the RSI had crossed over to the overbought and suggested the market is suitable for buying. However, when Rai drops below 40, it is viewed as a selling opportunity.
Today, Bitcoin’s RSI is only slightly above 40 at the time of writing this article. We have to admit that it is a rather slippery slope and Bitcoin has little to no room to fall.
The situation looks a bit gloomy for Bitcoin enthusiasts. Before we can come to a conclusion, let’s take a look at Bitcoin’s performance these last few years.
Bitcoin’s performance since 2008
Bitcoin’s inception in the year 2008 marked an important chapter in the domain of finance. World’s most beloved cryptocurrency Bitcoin was created as a response to the financial and economic instability of 2008-2009. What started as a humble innovative idea to surpass the centralized financial system has paved the way for a world nobody had imagined.
The founder of Bitcoin software, who goes by the pseudonym- Satoshi Nakamoto, introduced cryptocurrency to the entire world. A borderless, decentralized system would make currency transactions easier, faster, and transparent. What Nakamoto believed would free us was our reliance on the US dollar, inflation rate, and regulations of the centralized banking system.
When Bitcoin was first released via the Whitepaper, it was described as a digital and electronic payment system. The system would use cryptographic proof instead of common trust. Thus, allowing two interested parties to transact with each other directly without any interference from a third party like banks.
According to Nakamoto’s description, for each transaction, the token would include a cryptographic signature of the previous transaction and the key of the next owner. Thus, it can be easily verifiable via the chain of signatures.
The speculation of Bitcoin’s success at that time was slim. However, it was contended that should it one day surge to power, the value of Bitcoin would be equal to the value of all the wealth in the world.
It is a bit surreal, but the price of Bitcoin in the year 2008 to 2009 was $0. In 2011, its price saw a surge of 9900% when it reached $30 from just $0.30. After the first mining in 2012, Bitcoin’s price saw a possibility of growth. Competitions from other cryptocurrencies also contributed to this growth.
In 2013, bitcoin’s price witnessed a massive hike of 7000%. Its price skyrocketed to $1100. This created a market capital of one billion dollars.
After a slow and steady growth for the next few years. Bitcoin then reached a five-digit value of around $20,000 for each token in the year 2017.
During the pandemic in 2020, another took place, which further reduced its mining capacity to about 6.2 coins. This resulted in the value of Bitcoin surging to $40,000.
The BTC price started to recover after the crypto-market collapse in May 2022. It started to grow and but its period of consolidation was followed by a breakout. In November 2022, BTC faced a blow with the collapse of the FTX.
At the beginning of 2023, it only started to help the BTC price to regain its previous level within the symmetrical pennant, but it again faced a knock-back from the upper resistance of the triangle and soon may reach its edge.
It is speculated that the BTC price may undergo a serious bearish sentiment in the second quarter of 2023. The price may slash below $21,000.
Despite this turn of events, investors are advised not to panic and sell all of their BTC holdings. Experts believe that as long as there is no major modification in government regulation and disinflation is steady, BTC should not suffer. BTC price has the potential to go back up again.
However, the market right now signifies a bearish tone, and investors should be better of by being vigilant.
In the meantime, investors should look into some great alternatives to Bitcoin
Other best altcoins right now may be better investment options than Bitcoin.
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