Bitcoin Two-Month Rally Slows Down, What’s Next?
Over the past month, Bitcoin has seen a significant uptrend of about 40%, starting from the beginning of the year. As a result, BTC pulled a massive bullish trend carrying the rest of the crypto market along with it as other altcoins have also surged more than 10% respectively.
BTC is starting to bow to a bearish move following the bullish trend. In January, BTC barely had days with no bullish moves. However, since the beginning of February, BTC has had breaks from the continuous rally up by only 1.3% in February as opposed to the nearly 50% seen last month.
Bitcoin Two-Month Rally Slows Down
February has proven to be a month for a BTC rally break as negative news hit the headline this month more than positive ones. The SEC began the month with a back-to-back crypto crackdown. Though at first, BTC and the rest of the crypto market showed no concern over the headline, however, the aftermath has started to take effect on the market.
In the last 48 hours, BTC has suffered a toil from higher-for-longer interest rates to damp inflation that has pushed it below the ranging $24,000 mark. Besides that, the largest crypto by market cap has also experienced regulators’ frightening opinions.
In a meeting hosted by India under the G-20 Indian presidency on Friday, US Treasury Secretary Janet Yellen highlighted some reasons for having to apply robust regulation on digital assets mentioning that though there won’t be an outright ban on crypto, there would be a “strong regulatory framework.”
Furthermore, on Sunday, IMF managing director Kristalina Georgieva voiced a statement expressing that if crypto could begin to pose higher risks to financial stability, the idea of banning it shouldn’t be completely ruled out.
Statements such as these including crackdowns from regulators such as the SEC have impacted BTC’s recent bearish trend. Since the beginning of the month, BTC has only added about $1,500 to its value. The asset surged above the $25,000 mark once this month and didn’t take long before beginning to immediately trade below it.
Overall, the asset has shown fizzling trend indicating a slowdown from its bullish uptick. Looking at the 1-day time frame, BTC seems to have support at $23,800. Should the asset plummet below that, we could see a continuous bearish trend from the largest crypto by market cap.
In contrast, the chart also indicates liquidity to the upside just above $30,000. Should BTC rise above its previous high of $25,000, the chances of seeing a spike to above $30,000 are significant.
Crypto Market Follows Through
Bitcoin is not the only asset in the market experiencing a slowdown from its rally. Ethereum has also experienced a slowdown after hitting $1,700 for the first time in four months. Solana has also fallen from its high of $26 seen on the 9th of this month to trade below $23, down by 6.6% in the past 30 days.
This plummet comes after one of several downturns the Solana blockchain has been facing including the recent network outage which occurred during the weekend. So far, more than $1 billion has left Solana’s market cap between February 9 and February 27.
Meanwhile, despite the slight bears here and there, Bitcoin and other altcoins have started to pick up. In the last 24 hours, Bitcoin has risen 0.8%, Ethereum by 2.3% following its upcoming Shanghai launch, and Solana is up only 0.1%.