Bitcoin Swings Below $23,000 as Crypto Market Enters Consolidation

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(Kitco News) – The broader crypto market entered consolidation on Wednesday as Bitcoin (BTC) continues to trade within the $23,000 support level range – where it has been trading sideways since Jan. 21 – prompting crypto traders to focus their attention on the altcoin market.

In traditional markets, the prevailing trend was negative as major indexes fell under pressure while Google’s stock plunged 8% after its new AI research assistant Bard gave a wrong answer that featured in the Promotional material. As markets closed in the US, the S&P, Dow and Nasdaq all ended in the red, down 1.11%, 0.61% and 1.68%, respectively.

Data provided by TradingView shows that Bitcoin started the day off on the right foot, hitting a high of $23,436 in early trading hours, only to undergo a 3.2% intraday swing to hit a low of $22,685 before the bulls fail to put it back on top. $22,900.

BTC/USD 4 hour chart. Source: Trading View

“The upward price trend on the daily bar chart has come to a halt,” according to Kitco’s senior technical analyst Jim Wyckoff, who added that “the bulls still have the overall short-term technical advantage, but must soon show new power to maintain the price”. live uptrend.

Similarly, Eight Global analysts noted Bitcoin’s sideways price move in their Wednesday market update, pointing out that “BTC has been consolidating around $22-24,000 for over two weeks without really giving any clear signals. in which direction he wants to continue”.

Despite the sideways trend, analysts remain optimistic about the direction BTC is heading, saying, “it’s fair to say that as long as the price is making higher lows and higher highs, the trend is up so we can assume that the price will continue to rise from here.

More than anything, Eight Global pointed out that as a trader, “you always want to trade with the trend”, which “means you open a long position when the price is in an uptrend and a short position when the price is in a downtrend.

For now, Bitcoin remains in an uptrend, but in the event that BTC makes a lower low, “chances are we’ll see a quick retracement as we have little support built up on the upside. due to impulsive movements”, World Eight warned.

Crypto trader Daan Crypto Trades summed up what many analysts consider the best course of action in the following tweet, emphasizing that now is the time to practice the skillful art of patience.

$BTC Midrange at POC with closest liquidity levels over $500 in either direction.

Good time to relax and wait patiently. pic.twitter.com/v8KI0s2Gyd

— Daan Crypto Trades (@DaanCrypto) February 6, 2023

Altcoin Market Consolidates

The majority of the altcoin market also entered consolidation in trading on Wednesday after several weeks of strong price gains that helped bring the total market capitalization back above $1 trillion.

Daily performance of the cryptocurrency market. Source: Coin360

OriginTrail (TRAC) posted the biggest gain on the day, surging 50.89% to trade at $0.44, while Axelar (AXL) climbed 17.36% and BinaryX rose 17.36%. gained 16.28%. Recently high-flying AI-related projects SingularityNET (AGIX) and The Graph (GRT) suffered notable corrections, with their prices dropping by 17.24% and 20.63% respectively.

The overall cryptocurrency market capitalization now stands at $1.069 trillion, and Bitcoin’s dominance rate is 41.3%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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