Last week, the BTC/USD pair corrected down to 23000.00 (23.6% Fibonacci retracement) but has not been able to break lower yet.
The coin is under pressure from two long-term factors: the tightening of monetary policy in the US and the actions of US regulators after the bankruptcy of the FTX exchange. The consistent release of strong January data of the national labor market, inflation statistics that recorded a poor rate of decline in price growth, and minutes of the February meeting of the US Federal Reserve convinced investors that officials would continue to raise interest rates for several months, and their peak may be higher than expected by experts. Under these conditions, the dollar will strengthen against its main competitors, and the risks of an economic recession will increase, which will also not contribute to the popularity of risky assets.
Regulatory pressure on the digital sector is growing: consistent claims against Kraken, Binance, and Paxos, the issuer of USDP and Binance USD BUSD stablecoins, as well as information about the possibility of banning staking and access of individuals to the digital dollar make experts fear worsening business conditions and additional outflow of investments from the sector. The most pessimistic representatives of the crypto community believe that the current situation may lead to the withdrawal of digital companies from the United States to countries more loyal to the industry. Recently, the head of the Securities and Exchange Commission (SEC), Gary Gensler, reaffirmed that almost all cryptocurrencies, except for BTC, can be recognized as securities since they offer investors a profit using the efforts of intermediaries. The official also questioned the ability of digital assets to act as a store of value or payment mechanism and hinted at a further increase in the activity of the regulator.
The trading instrument regained some of its lost positions and is now near the middle line of Bollinger Bands 23400.00, but the resumption of growth to 25000.00 (Murrey level [8/8]), 26562.50 (Murrey level [+1/8]) will become possible if it consolidates above the level 24000.00. The key “bearish” level is 23000.00, and its breakdown will give the prospect of further decline to 21875.00 (Murrey level [6/8]), 20312.50 (Murrey level [5/8]).
Technical indicators do not give a single signal: Bollinger bands are horizontal, the MACD histogram is decreasing in the positive zone, but Stochastic is reversing upwards.
Resistance levels: 24000.00, 25000.00, 26562.50. | Support levels: 23000.00, 21875.00, 20312.50.