Amid 7% uptrend, Bitcoin investors must watch crucial resistance point moving forward
In what represents a very promising dramatic twist in the crypto ecosystem, Bitcoin (BTC), the world’s largest cryptocurrency, is leading the market growth charge. Bitcoin is up by 7.81% at the time of writing to $22,135.71 according to data from CoinMarketCap, and it looks set to pare off 1.31% of the losses it has printed over the trailing seven-day period.
The recovery of the price of Bitcoin has also stirred an upshoot in altcoins, with Ethereum (ETH) up 7.95% to $1,581.47 and Cardano (ADA) jumping 3.27% to $1.10.
While this growth outlook calls for breathing a sigh of relief, crypto analytics service provider IntoTheBlock has pointed out that the premier crypto is not out of the woods yet. The platform highlighted that irrespective of the current growth outlook, investors must watch out for the next significant resistance level placed around the $22,650-$23,325 price range.
#Bitcoin bounced strongly from the expected area of around $19k. But we’re not out of the woods yet. The next potential resistance lies between $22,650 – $23,325, as 1.14 million addresses acquired $BTC here at an average price of $23,022 pic.twitter.com/8DBpxT7UQb
— IntoTheBlock (@intotheblock) March 13, 2023
The analytics outfit highlighted that this level is important as a massive accumulation took place at that point. Over 1.14 million addresses stacked up the coin at that point, and a retest of the same level might fuel some forms of sell-off.
Dealing with headwinds
Despite renewed trust in Bitcoin among investors, which fueled the accumulation of the digital currency in recent times, investors will still need to exercise caution with respect to their risk exposure moving forward.
The aftermath of the fallout of three big banks in the U.S. — featuring two crypto banks Silvergate and Signature — has continued to rile the market. As a result, there may be additional contagion beyond the likes of blockchain payments firm Ripple Labs Inc, which has declared it has exposure to Silicon Valley Bank.
The industry shows promise, but the positivity must be handled with caution.