Bitcoin price analysis shows that the BTC/USD is following a declining change after dipping to lows of $23,245.02.The BTC/USD pair has failed to hold on to its early month gains, slipping from highs of $25,000. Since then, it has been following a downward trajectory and is currently trading just above the $23,000 support level.
As the economic landscape remains unpredictable, speculation grew around Silvergate’s future after Coinbase discontinued its services out of “an abundance of caution,” causing the pair to suffer.
Silvergate’s 10-K report, slated for this week, has been delayed due to the detrimental outcome of the FTX implosion. Furthermore, the company cautioned that its capitalization levels could be “less than well.”At the time of writing, Silvergate Capital’s parent company had seen its stocks drop a staggering 40%, making it one of the worst trading days for these securities.
Despite the immense pressure, Coinbase Global (COIN) shares only declined by 9.65% in the market, and Bitcoin’s price action managed to dodge further losses.
Bitcoin price analysis on a 1-day price chart: BTC dips below $23,500
Bitcoin price analysis on a daily chart shows Bitcoin’s price dropped sharply from an intra-day high of $23,744.94 to a low of $23,245.02.As of now, BTC/USD is trading at $23,269.37 and is likely to remain in a tight range before making any notable moves up or down.
The Moving Average Convergence Divergence (MACD) indicator shows that the pair has been bearish since the start of February and is likely to remain bearish in the near term.
The Relative Strength Index (RSI) has also declined from a high of 68.90 to stand at 44.71, which adds weight to the bearish Bitcoin price analysis. The Parabolic SAR is also turning bearish as the price is trending below the dots.
Bitcoin’s price is likely to retest the EMA-50 ($23,200) support level before attempting to break out of its range. If the price breaks below this support line, it could move toward the $22,000 psychological level. On the upside, if BTC/USD manages to climb above the $23,500 resistance line then it could test higher levels near $25,000.
BTC/USD 4-hour chart analysis: BTC/USD forms a bearish head and shoulders pattern
The 4-hour chart shows the pair is forming a bearish Head and Shoulders pattern. The left shoulder peak has been established at $24,440.45 followed by the head of the pattern at 24,039.21 and then finally the right shoulder high at $23,504.81.
Currently, BTC/USD is trading below the neckline of this pattern at $23,200 and if it breaches this level then it could target the S2 Fibonacci retracement support level near $21,700.
The Moving Average Convergence Divergence (MACD) indicator is in the bearish zone as the MACD line has crossed below the signal line. The Relative Strength Index (RSI) is currently trading at 35.71, which suggests that BTC/USD is highly oversold.
Bitcoin price analysis conclusion
Today’s Bitcoin price analysis shows that BTC/USD has been unable to sustain its early month’s bullish momentum and is now trading near the $23,000 support level. The pair is likely to remain in a tight range before making any notable moves up or down. If BTC/USD breaks below this support line then it could target a move toward the $22,000 psychological level. On the upside, if it moves above $23,500 then it could test higher levels near $25,000.
While waiting for Bitcoin to move further, see our Price Predictions on XDC, Polkadot, and Curve
