Overview of Bitcoin Price Movement
• Bitcoin price has edged 2 percent lower today to trade around $23.4k on Friday.
• On-chain data shows Bitcoin miners have reduced their sell pressure after taking profits in the past few weeks.
• Popular crypto analyst Rekt Capital thinks Bitcoin will break the macro downtrend next month or in April.
Falling Divergence Indicates Further Downside
After retesting $24k twice on the four-hour time frame, the Relative Strength Index (RSI) indicator has formed a falling divergence that most often leads to a price dump. Moreover, if the 50 and 200 simple moving averages (SMA) form a „death cross,“ then that could turn into a resistance line for Bitcoin bulls.
Macroeconomic Influence on Crypto Market
It is safe to say that Bitcoin price has an observable correlation with global market indexes due to high institutional adoption and crypto regulations. Recently, the United States dollar exhibited more weakness as Federal Reserve statement mentioned interest rates which had an effect on Bitcoin’s price movement and pushed it up to $24k. Furthermore, Mathew Dixon, CEO Evai predicts further downward movement before a final ‚blowoff‘ high occurs in March or April this year.
Whales & Miners Continue Accumulating Sats
Despite volatility in the market, whales are still accumulating more Sats while miners have also reduced their sell pressure after profiting from recent gains. This indicates further upside potential for BTC depending on how macroeconomic news affect its price over the weekend and beyond.
Conclusion
Overall, Bitcoin’s price is heavily influenced by global economic developments and news events related to cryptocurrencies regulations which makes predicting future prices difficult but not impossible given enough data points and analysis tools at our disposal. The current market dynamics indicate that whales and miners are accumulating BTC despite volatility which suggests bullish sentiment ahead of upcoming halving event in April 2024..