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Bitcoin Drops for the Second Consecutive Day in 2023

Bitcoin Drops for the Second Consecutive Day in 2023

After a significant drop in 2022, the biggest cryptocurrency in the world, Bitcoin, enjoyed an incredible start to 2023. With 15 straight days of gains, Bitcoin had just recorded its longest winning streak until it finally turned in direction.

The price of BTC had finished consecutively in the red for the 2nd time. As of now, Bitcoin has a $446 billion market cap, and its price is $23267. The cryptocurrency market has mostly followed Wall Street’s movements if this coherence is present.

The US indices ended flat on January 24, suggesting a close battle between bulls and bears. Additionally, macroeconomic considerations are still there, and next month’s Fed meeting will largely determine everything.

Tony Sycamore, an analyst at IG Australia Pty, also pointed out that the cryptocurrency market’s strong correlation to technology equities caused the frustrations with Microsoft’s future projections to spill over.

Can Bitcoin Maintain the Current Trend?

We have observed that the recent uptick in the bitcoin price this month coincided with a significant increase in whale buying. However, because of the recent price increase, short-term holders’ profitability has shot up to 98%, and as a result, there is a good likelihood that profits will be booked soon. It will be fascinating to see if BTC can hold the downside support level of $21,000 or if it will continue to decline.

The recent increase in Bitcoin price action has resulted in an early break above all lost basis for the first time since the 2018–19 bear market and the March 2020 Covid crisis. A prolonged period above these crucial psychological levels would’ve been beneficial.

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