Bitcoin Price Cracks Below $23,000, Drags Other Major Cryptos With It

The cryptocurrency market is experiencing a price spike as bitcoin and other cryptocurrencies plummet. CoinMarketCap shows that the price of bitcoin has fallen below the $23,000 level, losing almost 4% of its value in the past 24 hours at the time of writing. This could be caused by recently released macroeconomic data indicating a slowdown in the economy.

Source: CoinMarketCap

Only this Thursday, February 23, quarter by quarter GDP growth decreased from 3.2% to 2.7%. This is preceded by impending crisis in the housing market, putting pressure on investor sentiment. The stocks were not very enthusiastic about the economic situation of the United States, with major indexes for example, the Dow Jones and the S&P 500 dropped several percent.

Since stocks are highly correlated with crypto, the price of bitcoin, like the entire market, could run into big trouble in the long run.

A wave of challenges for investors

With the current price of Bitcoin at $22,981, the downward movement in the price of the royal cryptocurrency dragged the altcoin market with it. In accordance with DeFillamathe total value locked in space has decreased by 2% since yesterday from $49 billion to $48 billion.

Other major cryptocurrencies such as Ethereum also fell sharply, with the valuable altcoin almost following the drop in Bitcoin’s price in a weekly period. This, of course, led to a sudden drop in the prices of other top altcoins. Litecoin, a well-known favorite of crypto investors, experienced 8% increase in the weekly timeframe.

Source: DeFiLlama

The implications of the recent free fall in prices are significant. CoinGlass notes that there are more short sellers than long buyers, as evidenced by the liquidation of $143 million in long positions today, February 25th alone.

As Bitcoin price dips below $23k, BTC bulls chart their next move

The current price of the coin is haunting investors as the $25,000 rejection reinforces the bears in the short to medium term. However, the bulls may find support at $22, which is an important launching pad for an upside move in the near term.

Crypto total market cap at $1 trillion on the weekend chart | Chart:

For now, investors and traders should focus on supporting the coin at $22,000. If this support is broken, it could trigger a big sell-off that could bring bitcoin back to $21,000.

Macroeconomic events will also play a big role in a potential pullback in the long term. BTC bulls should also keep an eye on major stock indices like the S&P 500 as the price of bitcoin follows the stock market in price action.

Investors should also keep an eye on investor sentiment, which can be seen by the number of long or short positions on a coin. As the price of bitcoin continues to decline, investors should brace for a hit in the coming days.

– Featured Image by ArborCare

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