Author: BTCLFGTEAM
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Bitcoin continues “boring action” as BTC hovers above $22k
- Bitcoin on-chain exchange flows were $4 billion in and $4 billion out last week, Glassnode data shows.
- Crypto analyst Michael van de Poppe highlights BTC’s “boring price action” as bulls struggle above $22,000.
- BTC price saw downward action last week following a series of negative market related news.
The global cryptocurrency market cap remains above the $1 trillion mark, with the past 24 hours seeing roughly 0.6% in downward change. The global trading volume in the last 24 hours is around $38.9 billion.
But while Bitcoin (BTC) dominance hovers at 40.4%, the price action has weirdly remained more like a stablecoin. As noted on Sunday, Bitcoin managed to bounce off the $22,000 low reached as markets reacted to news related to Silvergate and Tether (USDT).
Bitcoin price continues to hover above $22k
Weekly on-chain exchange flow, a metric that shows the difference in BTC volume flows onto and off exchanges, points to the aforementioned flat action for Bitcoin price. The net flow aligns with the largely doji candlesticks the leading crypto by market cap has witnessed since last week.
Popular crypto analyst and trader Michael van de Poppe has highlighted the “boring price action” for Bitcoin since last week’s sharp retreat.
According to the analyst, BTC is still poised for a fresh bounce higher as bulls hold above key support. He also points to equities and notes a bounce for indices is likely to cascade into the crypto market. However, if a new “sweep of the lows” to $21,500 fails to hold, it could spell further losses for BTC.
Boring price action on #Bitcoin since the correction, but still acting in support here.
Indices bounced already and seem to continue to do so.
Might have another sweep of the lows and then reverse up, losing $21.5K = trouble time. pic.twitter.com/6GyzaiqZ3U
— Michaël van de Poppe (@CryptoMichNL) March 6, 2023
BTC sees $17.8 million in weekly net flows
As for the net flow, data from on-chain analytics platform Glassnode shows about $17.8 million in net flows, with $4 billion in inflows and roughly $4 billion in off-exchange flows last week.
The net flow for Ethereum, the second largest cryptocurrency by market cap and with over 17% of market dominance, was about $423.8 million. The leading altcoin’s exchange flows was $2 billion in on-chain inflows and $2.4 billion in outflows this past week.
On the other hand, the leading stablecoin Tether (USDT) saw weekly net flows of about 160 million, with total $6 billion flowing into exchanges and $6.2 billion withdrawn.
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Bitcoin price prediction: BTC outlook after Silvergate and Tether news
- Bitcoin price outlook after this week’s Silvergate and Tether news.
- BTC is hovering around $22,400 with key resistance near $23k amid a potential technical breakout to YTD highs.
- The $20k zone is a critical and psychological level for bulls.
Bitcoin price remains constrained below $22,500 after posting a sharp decline on Friday following a combination of broader market weakness and negative crypto-related news.
However, with price above $22,000, the technical outlook suggests bulls might still have a chance to push for new year-to-date highs in March or April.
Bitcoin price prediction: BTC declined amid Silvergate Bank and Tether news
On Wednesday, crypto-friendly bank Silvergate (SI) revealed it was a little deeper in trouble with a SEC filing that it would delay its financial report. The crypto bank then announced a halt to its payments network the Silvergate Exchange Network (SEN), triggering further uncertainty around its operations following the previously revealed $1 billion loss.
Indeed, selling pressure for BTC increased as major crypto firms including Coinbase and Paxos announced a switch from Silvergate to alternative banking partners.
But the price of bitcoin went on to touch lows of $22,000 as more negative news emerged – the Wall Street Journal published an article related to Tether, the company that issues the world’s largest stablecoin USDT. Allegedly, Tether and Bitfinex used “falsified documents” to acquire banks accounts amid questions over the stablecoin’s reserves.
Crypto trader and investor Scott Melker heighted the WSJ’s report in a Twitter thread on Friday.
The allegations in the report could have significant implications for Tether and the wider crypto market. If Tether’s dollar reserves are not what they have been claimed to be, it could lead to a collapse in the value of the cryptocurrency.
— The Wolf Of All Streets (@scottmelker) March 3, 2023
Bitcoin price outlook: What next for BTC/USD?
The RSI on the 4-hour chart remains largely flattened near the lower band as price action consists mainly of doji prints. While Bitcoin is holding above a support base formed in early January, there’s indecision as signaled by the doji candlesticks.
Bitcoin price movement on the 4-hour chart. Source: TradingView
If bears take charge further, BTC/USD will likely retest the aforementioned support line and potentially break past $22k to another key level near $21,600. Below that we could see a retest of the vastly important $20k level.
On the upside, the immediate hurdle is the $22.5k zone, with robust supply areas expected at the price levels currently signaled by the 50 and 200 moving averages.
The outlook on the daily chart shows the RSI sloping to suggest bears might have an upper hand.
However, there’s potential formation of an inverse head & shoulders pattern. The neckline of this likely inverse H&S pattern could be in the $25k zone. In any case, the immediate key price levels to watch as signaled by the 50-day and 200-day moving averages near $22,900 on the upside and $19,712 on the downside.
Bitcoin price prediction levels on daily chart.Source: TradingViewThe post Bitcoin price prediction: BTC outlook after Silvergate and Tether news appeared first on CoinJournal.
