Bitcoin Price Pushed Below $24,000 - How Will The $22,700 Pivot Point Play Out This Week?

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Crypto markets have been quite dramatic over the last few weeks, where market players have shown some strong performance in one week while being quite underwhelming in the other. Bitcoin, too, underwent a similar trajectory, and investors have now glued their eyes to the coin’s performance, as it maintains a critical threshold.

The entire weekend was bearish for bitcoin as it continued to fall in price, chopping more than 2% over the day and 5% over the week from bitcoin’s price. This descending trend is expected to continue for the current week, as the trading volume is accumulated and investors are opting out to sell.

A sell signal was set off the moment bitcoin moved past the $24,000 level, convincing investors that there aren’t many participants interested to purchase the coin at a higher price, which was the preconceived notion among investors who were accumulating the token for a profit in the short term.

Investors were quite disappointed with bitcoin last week, as it hinted but failed to move past the $25,000 level, however, some found consolation in the fact that bitcoin managed to stabilize at a little over $23,000, at a time when numerous factors were at play.

Edward Moya, a senior analyst at OANDA commented on the same saying, “It is rather shocking to see how little crypto is moving considering all the volatility across fixed income, stocks, FX and commodities. An impressive jobs report is driving rate hike calls and pouring cold water on those rate-cut bets for the end of the year. Bitcoin seems content hanging around the $23,000 level and that should be viewed as good news for crypto traders. With yields likely to continue to rise, Bitcoin might struggle to take out the $25,000 level over the short-term”

Bitcoin is currently trading at $22,800, having marked a 2.51% decrease throughout the day. The trading volume for the token, however, has increased relative to the weekend and was recorded to be $22.5 billion for the last 24 hours.

Miner Action & Small Wallets Foster Optimism For Bitcoin

Miners are in aggressive competition to sell bitcoin, as it maintains a relatively stable and predictable performance throughout the last few weeks.

Economic behaviour from miners suggests that they’ve been depleting their reserves more quickly than ever in the last 30 days while continuing to mine new bitcoins with increased manpower. The increasing number of miners, however, are quite okay with the current price performance of bitcoin. Now that the token is out of its “capitulation zone”, miners are at relief and expect higher profitability and less sell pressure.

At the same time, the number of small bitcoin wallets, with less than 0.1 BTC has increased in number since the start of the year. This is indicative of the FOMO that surrounds the market when investors are looking to accumulate a cryptocurrency.

Over 500,000 small bitcoin wallets have popped up in the last three weeks, and the signalling of “greed” on bitcoin’s Fear & Greed Index suggests that this won’t slow down anytime soon.

Another aspect that is held accountable for Bitcoin’s price to remain conservative comes from the US labour market report that announced that job opportunities in the US had grown more than expected. This impacted the decision to increase interest rates from the Fed, thus, constraining an uprise in the price of bitcoin.

Remarks from the federal chairman are still under anticipation for the week, which is expected to take aggressive action against battling inflation. The increase in interest rates from the Fed last week did push the price a bit, however, for a significant upsurge in Bitcoin price, additions to the increase in interest rates will be required.

Institutional Investors Positive About Bitcoin While Technicals Hint A Price Drop

A recent prediction from Cathie Wood has hinted at an optimistic outlook for Bitcoin from institutional investors, as her predicted figures project Bitcoin at $670,000 in the next 5 years on average, and up to $1.48 million.

Cathie recently made a statement that her team had been at fault for misjudging Bitcoin’s price potential, and its acceptance from businesses and governments. Further saying that her firm has invested in bitcoin and as they believe the token to have a bright future.

She acknowledged that the past year wasn’t as exciting for Bitcoin, and defended that the losses made by investors -criticized to be a disadvantage of the market- weren’t as significant, since major losses were made by businesses such as the FTX exchange.

Wood is more optimistic about Bitcoin than ever, encouraging wealthy investors to opt for the cryptocurrency as it offers a brilliant way to store value and counter inflation.

On the other hand, the short-term technicals for bitcoin suggest a rather conservative prediction for the coin’s price as it has been descending throughout Monday, arriving close to the next support level at $22,798.

This would be a pivotal point for bitcoin as a drop below this level will create an increase in supply and thus cause the price to drop even lower. Alternatively, the upside resistance for Bitcoin stands at $23,400 (the price maintained throughout Friday) and consequently $23,850. A breakout beyond this point might indicate a bullish rally for the token.

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