Bitcoin price settles at $22.4K as daily RSI retraces 2023 bull run

Market Analysis

Bitcoin (BTC) traded around $22,400 at the March 3 Wall Street open as analysts remained divided over the odds of a recovery.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Hopes for an inverse “Bart Simpson” on BTC

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading flat after an earlier flash crash saw $1,000 shaved off in minutes.

As Cointelegraph reported, concerns over the fate of Silvergate Bank exacerbated existing market cold feet to spark a margin call cascade to $22,000.

At the time of writing, only a modest comeback had taken place, while opinions diverged as to how short-term price action would play out. 

“Locked in some profit here on my short at $23,200 and moved my stop loss into profit so it’s risk free,” a risk-off Crypto Tony told Twitter followers.

“Notice those who were quick to say to long when we hadn’t even reclaimed resistance.”

BTC/USD annotated chart. Source: Crypto Tony/Twitter

Fellow trading account Daan Crypto Trades suggested that Bitcoin could see a mirror-like recovery to produce the inverse version of the classic “Bart Simpson” chart structure.

Popular trader and analyst Pentoshi, meanwhile, took a step back, saying he “did not know” what might lie in store for markets.

“Wanted to see a clear break of $23.8K, which we couldn’t get. Then, waiting for the area at $22.3K, which is hit and filled now,” added Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, in part of his latest update on Bitcoin.

$20,000 “inevitable” if $21,300 fails to hold

Further analysis offered some more hopeful perspectives on the long term.

Related: 3 BTC price hurdles Bitcoin bulls are failing to clear in 2023

The overnight downturn completely reset Bitcoin’s relative strength index (RSI) on daily timeframes, with its score now matching its position at the start of 2023.

BTC/USD 1-day candle chart (Bitstamp) with RSI. Source: TradingView

Popular commentator Moustache, who uploaded a chart fractal comparing current behavior with the end of the 2018 bear market, likewise hinted that better times were around the corner.

It is “still possible,” he nonetheless cautioned, for BTC/USD to dip to $21,300.

$21,300, meanwhile, formed an invalidation level for longing, according to blockchain analyst Mikybull Crypto.

“BTC tapped on the TL support and have a minor reaction. I am still observing to see a confirmation to take a long,” part of an analysis of the four-hour chart stated.

“Bear in mind, 21300$ is invalidation level and price breaks it, 20k is inevitable.”

BTC/USD annotated chart. Source: Mikybull Crypto/Twitter

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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