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Bitcoin might soon reach a macro bottom pattern if it continues to maintain its US$23k resistance
Experts believe Bitcoin is in the process of bottoming out after rallying by almost 25% this month. Since Bitcoin’s all-time highs, the crypto has declined approximately 70% and has also dragged down the entire crypto market along with it. The market is still feeling pain as digital currencies continue to plummet amid staggering macroeconomic factors. The overall crypto market cap dropped to less than US$1 trillion from its November peak of US$3 trillion. Besides Bitcoin, other cryptocurrencies like Ethereum, Solana, and Cardano, tanked massively. Also, to make things worse, the crypto market is quite closely following the footsteps of the stock market. As the deep impact of inflation continues to grow, more and more investors attempt to leave the market. And with the bonds sliding, there is no place for investors to hide.
Bitcoin’s recovery seemed quite modest, but it carried bearish trends due to the prevailing macroeconomic headwinds, like rate hikes and inflation, and the collapse of several high-profile crypto companies like Three Arrows Capital, Celsius, and others. Currently, the token is struggling to maintain the US$23,000 resistance and is speculated to drive back to the US$21,000 range. Besides, the macroeconomic conditions, Elon’s recent move accomplished to spook investors once again, especially those who returned to the market after the recent price rally. Bitcoin’s price trend depicts that it is definitely trying to break through its resistances, occasionally, but its attempts have been constantly rejected by the market.
Proof that the Bitcoin price will experience a ‘macro-bottom’
Currently, Bitcoin’s spot is so critical that key indicators believe that the US$20k level is heavy support for the crypto. Its subsequent bear market condition has dropped by over 84%. As per reports, the primary sign of Bitcoin’s macro bottom came from its weekly relative strength index (RSI). BTC’s weekly RSI has apparently fallen drastically. Bitcoin’s price did rebound when the Ethereum Merge upgrade’s probable launch date was released, slowly moving towards parabolic rallies.
But the bears continue to dominate the market. Experts believe that the key resistance will be near the US$22k mark. But if Bitcoin successfully maintains its position, it would continue to rise above the US$23k mark. Currently, it is quite difficult to predict if Bitcoin will suffer more losses or not, but it is kind of evidence that if the cryptocurrency experiences another freefall session, the investment community will surely lose its patience and lead to another major sell-off season.
Given today’s macroeconomic environment, with the Federal Reserve tightening interest rates to save the markets from inflation, some crypto investors and analysts believe that its prices may fall further. Companies are also embracing the recession that will continue to storm the market for the next several months. Bitcoin is still volatile and its prices may still continue to plummet, boycotting the macro bottom pattern. So, investors should be extremely cautious before investing in any cryptocurrency at this point, especially Bitcoin