Bitcoin price falls below $23,000, drags other cryptos with it
The crypto market is experiencing a bump in prices as Bitcoin and other cryptocurrencies plummet. CoinMarketCap shows that the Bitcoin price has retreated below the $23,000 level, losing nearly 4% of its value over the past 24 hours, at the time of writing. This may have been caused by recently released macroeconomic data showing a slowing economy.
Source: CoinMarketCap
Only this Thursday, February 23, quarter on quarter GDP growth has decreased from 3.2% to 2.7%. This is preceded by a threatening crisis in the housing market, which puts pressure on investor sentiment. Shares showed little enthusiasm about the economic situation in the US, with major indexes such as the Dow Jones and the S&P 500 falling a few percent.
With stocks highly correlated with crypto, the Bitcoin price, along with the entire market, could face more pain in the long term.
A wave of challenges for investors
With Bitcoin’s current price at $22,981, the downward price movement of the royal crypt has dragged the altcoin market along. In accordance DeFiLlamathe total value locked in the space fell 2% since yesterday from $49 billion to $48 billion.
Other major cryptocurrencies such as Ethereum also fell, with the precious altcoin almost following Bitcoin’s price decline in the weekly time frame. This of course caused other top altcoins to experience a sudden price drop. Litecoin, a known favorite among crypto investors, experienced an increase of 8% in the weekly time frame.
Source: DeFiLlama
The consequences for the latest price drop are significant. CoinGlass notes that short sellers outnumber long buyers, which is then supported by a $143 million liquidation of long positions just today, February 25.
As Bitcoin price settles below $23K, BTC Bulls chart their next move
The coin’s current price offers little rest for investors as the $25,000 rejection strengthens the bears in the short to medium term. However, the bulls may find support at $22, a crucial launching pad for a near-future upward move.
Crypto total market cap at $1 trillion on the weekend chart | Chart: TradingView.com
For now, investors and traders should focus on the coin’s support at $22k. If this support is broken, it could trigger a major selloff that could put Bitcoin back at $21k.
Macroeconomic developments will also play a major role in the potential long-term withdrawal. BTC bulls should also monitor major stock indexes such as the S&P 500, as the Bitcoin price follows the stock market in price movements.
Investors should also look at investor sentiment which can be seen in the number of long or short positions in the coin. As Bitcoin price continues its downward movement, investors should prepare for impact in the coming days.
– Featured image from ArborCare
