Bitcoin (BTC) threatened to drop $23,000 support on Feb. 25 as an ongoing price correction strengthened over the weekend.
BTC price support inches below
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is trying to make a decision on the fate of the $23,000 mark on the day.
The pair had lost nearly $1,000 on Feb. 24, ending the week in an insecure position along with US equities as the dollar rallied.
With “off-hours” trading now in effect through Monday, the chances of weaker liquidity triggering more pronounced moves have increased.
Analyzing the state of Binance’s order book, Material Indicators of Monitoring Resources confirmed the continued existence of a major bidding support line known informally as the “Notorious BID” and “great wall”.
Previously higher, liquidity holders moved it lower for the week.
“If the Notorious BID wall at $22,250 holds, I expect it to be part of the weekend whale games. I wouldn’t be reaching for knives”, Material Indicators commented.
“Expect BTC to retest lows or potentially move into price discovery before a legitimate Bull Market Breakout.”
Turning to the upcoming weekly close, trader and analyst Rekt Capital, however, outlined $23,300 as important to protect bulls’ interests.
“Weekly retest of the confluent area which is the monthly maximum and lower maximum resistance is in progress”, he he wrote in a Twitter update.
“Price needs to hold here for the retest to be successful. However, a weekly close below this area would be a bearish signal.”
An additional post argued that the monthly close would be a driving factor in the overall trend being just a few days away.
A failure #BTC The weekly retest of ~$23400 as support would mean that the price remains within the monthly macro range
Let’s see how the Monthly Close
1M close above ~$23400 -> range break likely
1M Close below -> $ BTC remains within range and can drop lower in range#Crypto #Bitcoin pic.twitter.com/xTAqH7pVlm
— Rekt Capital (@rektcapital) February 24, 2023
Bitcoin difficulty, hash rate holds course
Others showed signs of frustration that Bitcoin was unable to break $25,000 and relied on more substantial longer-term resistance levels above it.
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“It’s amazing that we couldn’t just get an output bomb above 25K for a god-level short input,” Crypto Chase summed up.
“Everyone is bullish and euphoric and the price just wipes out the most obvious resistance… too bad. Maybe it still gets later… idk. Crypto just doesn’t trade like it used to.”
A subsequent update highlighted $22,700 as a negative level to preserve for another run at $25,000.
I’ll want to see 22.7K hold if an actual push above 25K for liquidity is still in the cards. Daily S/R confluence + 0.618 fib from current leg. pic.twitter.com/ZHShTi9SzT
— Crypto Chase (@Crypto_Chase) February 24, 2023
A point of optimism, however, came in the form of Bitcoin network fundamentals, struggling to rise 9.95% in its latest automated reset — the biggest since mid-January.
As Cointelegraph reported, both the difficulty and the hash rate continue to rise to new record highs despite the slowdown in price recovery.
“Bitcoin mining became 10% harder last night,” Maartunn, contributing analyst at on-chain data platform CryptoQuant, he responded.
The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cointelegraph.