Recently, a lot has been written and painted about Bitcoin. Among these, important data was that it would rise from February to March to April. Unfortunately, the top cryptocurrency fell 4.5 percent in 24 hours and fell below $24,000. This drop caused investors to react immediately and increase sales. So what is the reason for this drop?
Is It A Self Fulfilling Prophecy?
There is no valid reason for Bitcoin’s decline. Nevertheless, it is believed to be a self-fulfilling prophecy due to past moves and misread chart transmissions. The Bitcoin industry is preparing for a successful and green year in 2023. Bitcoin’s steady rise since the beginning of the year is undoubtedly the most important factor behind this phenomenon. In particular, the gradual decline in the restrictive stance of regulators has gradually boosted investor confidence in the asset. The fact that regulators aim for a general framework by 2023 is another sign of this upward trend.
Unfortunately, these developments are not permanent. BTC, stuck in the $16,000 range in the fourth quarter of 2022, was trading at $25,000 until recently. However, the highest cryptocurrency dropped 4.5 percent in 24 hours to below $24,000. Investors immediately reacted to this drop, which led to increased turnover. So what is the reason for this decline?
How Severe Was the Bitcoin Decline?
Bitcoin (BTC) fell 4.5 percent in 24 hours to below $24,000.
The Bitcoin price turned negative in the last twenty-four hours, although it remained above the $25,000 mark. Bitcoin bears were active in the region around $25,000. The price reached $25,120 before falling to a new low.
There were also significant moves below the $24,750 and $24,300 levels. The current price suggests that the wave from $23,868 to $25,118 is an immediate long-term correction. Moreover, the hourly chart of the BTC/USD pair shows a clear break of an important uptrend with support around $24,300.
The current bitcoin price is below $24.00 and the 100-hour simple moving average.
On the upside, immediate resistance is at $24.500. The next important resistance is at $24,600, and the 100-hour simple moving average is very close. A break of the barrier above $24,600 could move the price towards the main resistance zone of $25,000.
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