Is Bitcoin Death Rally Going To End Soon? BTC Price May Surge From This Support Level
Shayan Chowdhury15 Feb 20232 min read
This week has brought a rough time to the crypto industry as it has become a hotspot for regulatory attention. Despite Bitcoin’s promising bullish start in January, which once sparked signs of an upcoming bull market, the crypto king now faces severe trouble holding its price above the weekly support level.
As SEC’s crypto crackdown is gaining more strength, it creates fear among BTC investors in holding the asset for the long term. However, the BTC price is set to rebound as it finds crucial support after forming its final bottom.
Bitcoin Achieves Huge Milestones To Strengthen Bulls’ Domination
After a bullish trend to $23K, many analysts believed that Bitcoin would end the prolonged crypto winter with its astronomical surge. However, the predictions are now tumbling due to the unexpected 6.4% CPI data release as BTC fails to trade up to the market’s expectations.
Despite all negative momentum, users are enjoying the BTC market as miners have earned over $600K from the NFT protocol Bitcoin Ordinals, which surged users’ activity. Moreover, on-chain analytic firm Glassnode noted that the launch of Bitcoin Ordinals skyrocketed non-zero BTC addresses to an all-time high of 44 million. Additionally, Bitcoin’s average block size has touched an all-time high above 2.5mb since its launch in 2009.
However, investors still have less interest in accumulating BTC amid the bottom price range, as Glassnode hinted at a decline in the accumulation score. The trend score is now at 0.25, which signifies a distributive nature in the market as sellers are exiting their positions to get the maximum profit in the dip.
This Support Level Will Play A Crucial Role In BTC’s Uptrend
After hitting a three-week low, the BTC price has made a minor upward retracement. However, the bearish sentiment from SEC’s crypto crackdown remains a concern that may plunge the asset downward anytime soon. Market analysts believe BTC has reached its final bottom, from which the asset may again gear up for a bullish rally.
According to CoinMarketCap, Bitcoin trades at $21.6K after forming a support near $21.3K. A prominent crypto trader, MadWhale, predicts that Bitcoin is preparing for a short-term bullish trend in the next few days.
The analyst mentions that the BTC price has surged above its 31.8% Fib retracement as bulls emerged to defend its crucial support level. If Bitcoin gains positive vibes from the market, it can test its resistance again at $22.5K.
Looking at the daily price chart, Stoch RSI is gaining momentum and heading toward a neutral region, which indicates room for an uptrend. A breakout above the EMA-20 trend line at $22.2K will gain investors’ trust, and BTC may witness an uptick in accumulation, pushing the token to the $25K level.
However, bulls should stay cautious about a death cross as a failure to retest the level of $22.2K will lure sellers to open short positions, plunging Bitcoin to $20K.
