Bitcoin (BTC) prices increased by 1.04% on Saturday. BTC rose 0.73% to $21,865 on Sunday. BTC finished the day with a price that was lower than $22,000 for the third session in a row.
After a choppy beginning to the day, bitcoin prices dropped to an early low of $21,614. After skirting the First Major Support Level (S1) at $21,448, BTC reached a new all-time high of $21,907 in the last hour of trading.
BTC briefly traded over the $21,885 First Major Resistance Level (R1). But it then retreated and finished the session at $21,865.
Bitcoin’s Price Was Stuck Below $22,000 Due to Regulatory and Fed Worries
There were no exogenous market forces at work on Saturday, thus prices fluctuated aimlessly. Dip buyers helped the market prepare for another hectic week.
Hawkish Fed rhetoric has revived Fed Fear after the January US Jobs Report. Investors are considering the possibility of interest rates rising beyond 5% and staying there.
This week’s US Consumer Price Index Report may support a more hawkish view, which would be market-bearish. Regulatory risk heightened significantly after Kraken settled with the SEC and discontinued US staking.
The SEC’s focus on enforcement means future exchanges will likely be scrutinized similarly. A US ban on crypto staking services would test investors and change the bitcoin economy.
Regulators, Silvergate Bank and FTX probes, and Genesis’ bankruptcy will keep investors busy. Investors also need to keep in mind the pending litigation between the SEC and Ripple.
A Ripple triumph may give the Commodity Futures Trading Commission more power to regulate the digital asset market.
Forecast for Tomorrow
Investors should monitor cryptocurrency newswires for FTX, Genesis, and Silvergate Bank updates. Since the SEC will supervise additional bitcoin exchanges, prices might tumble below $20,000.
Investors worried by Tuesday’s US Consumer Price Index Report may affect the NASDAQ mini in the closing hour. Inflationary pressure would warrant a higher interest rate route to reach the aim.
This would be the case following the hot US Jobs Report and hawkish rhetoric from the Fed.
Although Bitcoin’s price has dropped below $22,000, the Fear & Greed Index has not moved
Despite moving from 49/100 to 50/100, the BTC Fear & Greed Index stayed in the Neutral zone today. Despite rising. SEC regulations and Fed fear have buoyed crypto investor enthusiasm, putting the Index in Neutral.
Despite Fed Fear, regulatory news will affect Bitcoin and the cryptocurrency market more. Staking cryptocurrencies might be outlawed by the US government.
If BTC prices are to rise to $23,000, the Index must avoid the Fear zone after returning to NeutralThe Index returning to the Fear zone would imply a short-term reversal of the upward trend.
Price Movement in Bitcoin (BTC)
Bitcoin has dropped by 0.07% to $21,850 as of this writing. Bitcoin started the day at $21,889, before dropping to a low of $21,847. The price fluctuated sideways for much of the morning.
To reach R1, BTC must stay above $21,795. If the price rose above Saturday’s $21,907 high, it would imply a breakthrough. Crypto-friendly newswires encourage long-term rallies.
If the rally continues, BTC may bid at the Second Major Resistance Level (R2) at $22,088. The third Major Resistance Level is $22,381. (R3).
If the price drops below the pivot point, the First Major Support Level (S1) at $21,684 becomes crucial. BTC should stay over $21,500 unless another risk-off crypto sell-off occurs. S2 at $21,502 should limit price declines. Third Major Support Level $21,209 (S3).
Negative exponential moving averages and 4-hour candlestick chart. BTC exceeded the 200-day exponential moving average ($21,705).
Saturday’s bearish cross separated the 50-day EMA from the 100-day EMA. The 100-day EMA approached the 200-day EMA, signaling market weakness.
Bitcoin exceeded the 200-day exponential moving average of $21,705. After a bearish cross on Saturday, the market’s 50-day EMA moved further from the 100-day EMA.
The 100-day EMA approached the 200-day. These moves indicate market weakness. Saturday’s bearish cross.
