As the weekend draws near, Bitcoin is having trouble maintaining its current price of nearly $23,000. At the time of writing, BTC was marginally down in the last 24 hours at $22,977. Selling pressure surged after personal consumption expenditures, excluding food and energy, increased by 4.7% over the year and 0.6% in January, exceeding market estimates of 4.4% and 0.5%, respectively. This may lead to worries that the US Federal Reserve may need to raise rates more to manage inflation. On February 24, 2023, at block height 778,176, the mining difficulty for Bitcoin reached an all-time high (ATH), surpassing the 40 trillion hash mark for the first time. Given that Bitcoin had a cumulative increase of 24.89% during the previous 60 days, the network’s difficulty climbed by 9.95%, which is the second-largest increase this year.
Key levels
Resistance Levels: $30,000, $27,000, $25,000
Support levels: $22,000, $20,000, $18,000
BTC/USD Daily ChartBitcoin (BTC) has begun to decline again against the US dollar, starting from the $25,000 area. As a result, the BTC/USD pair might move into a bearish zone, falling below the $22,000 level. The pair has continued to drop, breaking through the $23,000 level toward the moving average (MA 50), as bears seek to push it below. BTC reached a low of around $22,716 before consolidating. The pair now faces immediate resistance at the $24,000 level.
If the pair breaks above the $25,000 resistance level, this could trigger another increase and push the pair toward the $27,000 resistance level. On the other hand, if the pair continues to decline, breaking below $22,000 and it falls below this level, the $17,000 level might hold.
BTC/USD 4-Hour ChartThe overall crypto market is falling short of expectations as buyers continue to experience a downward trend in BTC/USD, which has decreased slightly. However, on the 4-hour chart, a bullish moving average cross and a close above this year’s high of $25,000 suggest that market sentiment may be shifting toward the positive in the medium term.
Upon closer analysis, the cryptocurrency pair could maintain its upward trend as long as traders buy pullbacks, with $20,000 as a new level of support and $17,000 below the moving average serving as the bulls’ second line of defense. If the pair closes above $23,000, it could resume its upward rally, potentially targeting the previous resistance level of $25,214.
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