Bitcoin price is down 2 percent today to trade around $23.4k on Friday. After retesting $24k twice on the four-hour time frame, the RSI indicator formed a descending divergence that most often leads to price declines. Bitcoin bulls should be very careful about the death cross, which involves the 50 and 200 WMAs, lest it happen for the first time since its inception.
Also, the 50 and 200 WMA have acted as a support line for the past ten years and would become a resistance line if the death cross occurred.
However, popular crypto analyst Rekt Capital believes that Bitcoin will break the macro downtrend next month or in April. Furthermore, on-chain data shows that Bitcoin miners have reduced their selling pressure after turning a profit in recent weeks. Furthermore, whales continue to accumulate more Sat regardless of price volatility.
Historically, #BTC tends to break macro downtrend ~366 to 396 days before next halving event
Now $BTC is 425 days from the next Halving in April 2024
At the earliest, the breakout of the bearish macrotrend could occur next month (March) or in April#Crypto #Bitcoin pic.twitter.com/okuKY13mXy
— RektCapital (@rektcapital) February 2, 2023
Bitcoin market under macroeconomic influence
By now, it is safe to say that the Bitcoin price has a significant correlation with global market indices due to high institutional adoption and crypto regulations. Over the past few days, the Bitcoin price has reacted to the high-impact news of the Fed’s interest rate statement. As the United States dollar exhibited more weakness, the price of Bitcoin rose to $24k.
“I expect that DXY is likely to retest what was support and now upper resistance. This would align with my inverse expectation of BTC and Crypto going down a bit before a final ‘blowout’ high (not much higher IMO),” noted Evai CEO Mathew Dixon.
With more high-impact news expected from the United States later today on the unemployment rate, more volatility is expected in the crypto market over the weekend.
This post Crypto Market Watch: Why is the price of Bitcoin down today?
was published first on https://coinpedia.org/bitcoin/crypto-market-watch-why-is-bitcoin-price-down-today/