Bitcoin (BTC) fell below USD 23,000 shortly before the weekend and dipped as low as USD 22,700 on Saturday. On Sunday, bitcoin began a tentative recovery and regained traction at $23,200. Last night, bitcoin took a big jump and shot to a peak of $23,700, but by this morning is down to $23,350 on Binance and $22,130 on Bitvavo.
This means that the bitcoin price is up 0.8% today. Trading volume increased by 14% in the last 24 hours. The total market capitalization is $451 billion and the dominance is 42.2%. The Fear & Greed Index comes out at 50 (Neutral).
Bitcoin Fear and Greed Index is 50 — Neutral
Current price: $23,559 pic.twitter.com/JzbvpXrMWF— Bitcoin Fear and Greed Index (@BitcoinFear) February 27, 2023
Bitcoin correction to $22,000?
However, according to a new analysis from Duo Nine, bitcoin needs to break that $23,700, where it peaked last night, to prevent bitcoin from sinking deeper. According to the analyst, the price is in a correction towards $ 22,000.
The bounce is over. #Bitcoin appears to form a 5 step correction.
The last leg starts now, unless it breaks above $23.7k.
You long the support and short resistance. Easy right?
Curious what will happen at $22k. #BTCUSD #BTC pic.twitter.com/RhltEsrVs3
— Duo Nine ⚡ discord.gg/ycc (@DU09BTC) February 27, 2023
Bitcoin mining difficulty rises to new record
Friday night went back to the so-called bitcoin mining difficulty, or difficulty, up. It increased by 9.95% to a new record of 43.05 T against an average hash rate of 308.09 exahashes per second (EH/s).
That was slightly less than expected, but it still significantly increases the pressure on miners. However, this is not yet leading to miners selling their reserves again, as we saw last year, analyst IT Tech reports:
Despite the increasing miner difficulty, they continue to increase their BTC reserves🟠– a positive sign for the market! #Bitcoin https://t.co/RH9E05IOqF pic.twitter.com/hwz22SKMm3
— IT Tech (@IT_Tech_PL) February 26, 2023
Bad week, rising dollar and macro data
Not only did bitcoin lose value last week, it was also a red week for other risky assets. It was even the worst week of 2023 for them. Bitcoin is almost 4% down compared to a week ago.
The riskier the asset the more it has fallen last week @CalebFranzen $ARKK pic.twitter.com/0XlmNsYx6m
— Mukund Mohan (@mukund) February 26, 2023
That had something to do with the returning strength of the dollar. The rate of the US dollar index (DXY) was able to rise sharply last week, but seems to have run into resistance since the weekend.
#DXY rising wedge, i wana see a breakdown here pic.twitter.com/TdlR0zwxjd
— CryptoBoss (@CryptoBoss1984) February 27, 2023
In terms of macroeconomic data, it should be a quieter week. Still, later today we’ll get new data on the US housing market that are worth keeping an eye on. Things may get more exciting on Thursday with new unemployment figures in the US and Europe.
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