Threatened by Bitcoin’s Bullish Momentum
With a 40% gain since the beginning of 2023, Bitcoin (BTC), the most popular cryptocurrency worldwide, has seen tremendous progress. BTC is presently trading at $21,818 and has a market valuation of $420 billion, but recent regulatory action by the SEC on the cryptocurrency exchange Kraken has led to intense selling pressure and a 4% decline in the price.
Critical Support Levels for a Bullish Trend
Rekt Capital, a well-known cryptocurrency trader, says that Bitcoin needs close over $22,692 to continue its upward trajectory. If it fails to do so, Bitcoin may lose momentum and revert to its previous price of $20,000. The chart demonstrates that after rejecting from $23,400 barrier, BTC is in danger of losing its multi-week higher low.
Insights into Trading Psychology
Rekt Capital also explains the psychology of cryptocurrency trading. Dopamine is released by the brain following a profitable deal, which makes people want to repeat the experience.
Retractions from cryptocurrency exchanges
Since November 2022, 260,000 BTC have been taken out of cryptocurrency exchanges and more than 350,000 have been blocked, according to data from @santimentfeed. This stresses the phrase “not your keys, not your coins” even more.
Macroeconomic News and the Price of Bitcoin
According to a recent analysis by the Federal Reserve Bank of New York, the failure of the cryptocurrency exchange FTX had a greater impact on the price of Bitcoin in Q4 2022 than did macroeconomic news. Even though Bitcoin is perceived as a purely speculative asset, the study found that it is orthogonal to monetary and macroeconomic news, which is surprising given that unanticipated changes in discount rates should, in theory, influence the price of Bitcoin.
Disclaimer
The accuracy, caliber, advertising, goods, or other contents on this page are not endorsed by CoinUnited News, nor does it accept liability for them. CoinUnited News disclaims all liability in connection with any loss or damage caused, claimed to have been caused, or allegedly caused by the use of or reliance on any such content, products, or services.