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(Kitco News) – Cryptos continued to consolidate on Tuesday as the volatile month of February draws to a close following enforcement actions by the Securities and Exchange Commission and news that companies like Mastercard are pausing new crypto partnerships until conditions in the market improve .
The traditional market also limped across the finish line, with the S&P, Dow and Nasdaq ending the final day of February down 0.3%, 0.71% and 0.1% respectively.
Data provided by TradingView shows that Bitcoin (BTC) has traded in a range between $23,300 and $23,800 throughout the day as neither the bulls nor the bears managed to take control of the price action to make a meaningful price change cause.
BTC/USD 4 hour chart. Source: TradingView
March bitcoin futures prices were “slightly firmer” in early US trade on Tuesday, according to Kitco Senior Technical Analyst Jim Wyckoff, who said that “bulls still have the technical advantage in the short-term as the daily chart shows a Price uptrend is present but only just.”
Wyckoff warned, “The bulls have been flat of late and will need to show renewed vigor soon to keep the uptrend alive and maintain their technical lead.”
Major resistance at $25,000
According to analysts at Arcane Research, “Bitcoin’s momentum tailed off last week after failing to break the $25,000 resistance” after the PCE read higher-than-expected, causing the market to lose its Readjusted rate hike expectations for March FOMC meeting.
“Aside from PCE readings, the past week has been relatively quiet and we are not seeing any relevant changes in market structure or overall sentiment,” Arcane Research said.
According to Vetlee Lunde, senior analyst at Arcane Research, “after a slow but SEC-heavy February, the “short-term outlook has improved and a BTC push towards $28,000 may come sooner rather than later.”
Lunde noted that the next level of resistance after $25,000 is $28,000 and he expects the market to push in that direction in March.
“Like clockwork, BTC failed to break the $25,000 resistance established in August and is still floating within its post-credit crunch trading range,” Lunde wrote. “From a technical perspective, $25,000 is important. This area briefly provided support when Do Kwon’s House of Cards collapsed and has been a key area of resistance ever since.”
What to watch out for until BTC can scale above $25,000, Eight Global founder Michaël van de Poppe posted the following tweet highlighting the need to turn $23,800 into support and $22,500 as a good entry point for identified a long position.
#Bitcoin is still unchanged at this point.
My thesis is that I’m not interested until we flip and break $23.8k for support.
After the harsh cancellation, we appear to be heading for a period of consolidation in what has been a relatively dull week.
In this case, admission is around $22.5,000. pic.twitter.com/vwzad9Y83I
— Michaël van de Poppe (@CryptoMichNL) February 28, 2023
Four altcoins are rising while the rest are consolidating
Overall, the altcoin market consolidated alongside Bitcoin on Tuesday, but four tokens in the top 200 managed to post double-digit gains despite the odds.
Daily performance of the cryptocurrency market. Source: Coin360
Liquidity (LQTY) was by far the top performer, gaining 65.13% on the day to trade at $2.07, while SingularityNET (AGIX) was up 15.9% and Nervos Network (CKB) was up 12 .78% and ImmutableX (IMX) up 11.71%.
The total cryptocurrency market cap is now $1.058 trillion and Bitcoin’s dominance rate is 42.3%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of the author Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and/or damage resulting from the use of this publication.
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