Bitcoin price Just under $22,000, will we go back to $21,000?

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The cryptocurrency market, which holds most of the investment world, is known for its volatile trends. Bitcoin, despite being the highest consistently performing asset in the crypto world, is notorious for its fluctuations over the years.

Bitcoin price today is $21,854.50. Over the last 24 hours, it saw an $800 decline in its price. Which means a fall of 3.4%.

Investors and corporations in the cryptocurrency world are waiting with anticipation with their eyes definitely on the Bitcoin price chart. Will Bitcoin recover from today’s price, or will it go back to $21,000?

Let’s take an analytical look to break down the behavior of Bitcoin in the last few days.

Bitcoin’s behavior in the last week: a critical take

According to the latest statistics from the crypto markets, the total supply of Bitcoin is around 19.28 million, while the maximum supply is 21 million. Bitcoin’s 30D volatility is at 0.51. The 24-hour transaction value of the token exceeds $2 billion. And the 24 hour transaction count is 363,667.

The overall Bitcoin price chart from July 2022 shows a strong gain trend. Despite frequent sharp falls, the chart projects a slow rise in the price of Bitcoin over the past month.

At the beginning of this month, the price of bitcoin was $23,723.8. For the entire last week, the price of Bitcoin was above $23,000. However, earlier this week, on February 6, 2023, we saw a drop in the price of Bitcoin when it was around $22,700.

In the middle of this current week, the price of Bitcoin rose again. This time, its price soared above $23,000. The rise was due to US Federal Reserve Chairman Jerome Powell’s comment on inflation. He mentioned that inflation is coming down, albeit slowly and painfully, at an economic forum in Washington.

However, the sweet $23,000 spike was short-lived. The price dropped again, and this time around $22,000.

The last 24 hour high was around $22818. The last 24 hour low was a couple of points above $22500. This fluctuation in its price has left the total market capitalization of the token at $421.5 billion. Bitcoin’s 24-hour volume currently stands at $716.04 million.

World number one: Bitcoin, before a possible fall

Bitcoin had a tremendous bull run in the year 2021. In the year 2022, the Bitcoin price remained mostly consolidated throughout. However, the beginning of 2023 witnessed a move that managed to tip the needle towards bullish sentiment. The crypto market expected the bullish behavior to keep the Bitcoin price rising throughout the year.

However, recent events and the crash affecting the crypto market may have shaken things up for cryptocurrency’s most beloved contender. The Bitcoin price has fallen below $22,000. And there is only one question on everyone’s mind: will the volatile move bring its price below $21,000, or will it climb back to $23,000 again?

The number one cryptocurrency has been rejected from the $23,000 zone and is currently sitting below $22,000. The 8-day EMA (exponential moving average) crosses the short-term 20-day SMA (simple moving average), suggesting a volatile downward spiral.

This contradicts previous Bitcoin prediction by crypto analysts around the world. When the price of Bitcoin touched the “golden cross” on February 6, the market experienced a bullish tone. The “golden cross” is usually a promising factor that made investors buy the token.

According to the Bitcoin price chart, when its price was at $23,296, the number of transactions on the Toronto Stock Exchange was around 344.34K. However, soon the price of Bitcoin fell below $23,000 and down to $22,370. One interesting thing to note here is that although its price dropped, the number of transactions increased to 369k.

Does it mean that even though there was a noticeable drop, most were quietly expecting a bullish rise?

Does RSI have any response regarding Bitcoin faith?

The Relative Strength Index is a valuable tool in determining the course of the cryptocurrency price chart. Earlier, when the Bitcoin price started to rally towards the $20,000 zone, the RSI crossed into overbought and suggested that the market is suitable to buy. However, when Rai falls below 40, it is seen as a selling opportunity.

Today, Bitcoin’s RSI is only slightly above 40 as of this writing. We have to admit that it is quite a slippery slope and Bitcoin has little to no room to fall.

The situation looks a bit bleak for Bitcoin enthusiasts. Before we can come to a conclusion, let’s take a look at Bitcoin’s performance over the past few years.

Bitcoin performance since 2008

The start of Bitcoin in the year 2008 marked an important chapter in the domain of finance. The world’s most beloved cryptocurrency, Bitcoin, was created in response to the financial and economic instability of 2008-2009. What started as a humble innovative idea to overcome the centralized financial system has paved the way for a world no one had imagined.

The founder of the Bitcoin software, who uses the pseudonym Satoshi Nakamoto, introduced the cryptocurrency to the whole world. A decentralized and borderless system would make monetary transactions easier, faster and more transparent. What Nakamoto believed would set us free was our dependence on the US dollar, the rate of inflation, and the regulations of the central banking system.

When Bitcoin was first launched via the Whitepaper, it was described as a digital, electronic payment system. The system would use cryptographic proof instead of common trust. Thus, it allows two interested parties to transact with each other directly without the interference of a third party such as banks.

According to Nakamoto’s description, for each transaction, the token would include a cryptographic signature from the previous transaction and the next owner’s key. Therefore, it can be easily verifiable through the signature chain.

Speculation about the success of Bitcoin at the time was thin. However, it was claimed that if he ever came to power, the value of Bitcoin would be equal to the value of all the wealth in the world.

It’s a bit surreal, but the price of Bitcoin in the year 2008 to 2009 was $0. In 2011, its price saw a 9900% increase when it reached $30 from just $0.30. After the first mining in 2012, the Bitcoin price saw a chance for growth. Competition from other cryptocurrencies also contributed to this growth.

In 2013, the bitcoin price experienced a massive 7000% increase. Its price skyrocketed to $1100. This created a billion dollar market cap.

After slow and steady growth over the next few years. Bitcoin then hit a five-digit value of around $20,000 per token in the year 2017.

During the 2020 pandemic there was another one that further reduced its mining capacity to about 6.2 coins. This resulted in the value of Bitcoin increasing to $40,000.

Last words

The BTC price started to recover after the crypto market crash in May 2022. It started to grow and its consolidation period was followed by a breakout. In November 2022, BTC took a hit with the FTX crash.

In early 2023, it only started to help BTC price regain its previous level within the symmetrical pennant, but again faced a pullback from the upper triangle resistance and could soon reach its edge.

It is speculated that the BTC price may suffer from serious bearish sentiment in the second quarter of 2023. The price may fall below $21,000.

Despite this turn of events, investors are advised not to panic and sell all their BTC holdings. Experts believe that as long as there is no major change in government regulation and disinflation is constant, BTC should not suffer. The BTC price has the potential to rise again.

However, the market right now signifies a bearish tone, and investors should be better vigilant.