Since the beginning of the year, Bitcoin has seen a significant uptrend of about 40% over the last month. As a result, BTC has dragged the rest of the crypto market with it, with other altcoins increasing by more than 10%.
Following the bullish trend, BTC is beginning to yield to a bearish move. BTC barely had days with no bullish moves in January. However, since the beginning of February, BTC has taken a break from the continuous rally, rising by only 1.3% in February, compared to nearly 50% in January.
Bitcoin’s Two-Month Rally Slows
February has proven to be a month for a BTC rally break, as negative news has outweighed positive news this month. The SEC began the month with two crypto crackdowns. Though BTC and the rest of the crypto market initially showed no concern about the headline, the fallout has begun to affect the market.
BTC has suffered a toil in the last 48 hours as higher-for-longer interest rates to dampen inflation have pushed it below the ranging $24,000 mark. Furthermore, the largest cryptocurrency by market cap has been subjected to regulators’ unsettling opinions.
On Friday, during a meeting hosted by India as part of the G-20 Indian presidency, US Treasury Secretary Janet Yellen highlighted some of the reasons for the need for robust regulation on digital assets, stating that while there will be no outright ban on crypto, there will be a “strong regulatory framework.”
Furthermore, IMF managing director Kristalina Georgieva stated on Sunday that if cryptocurrency begins to pose greater risks to financial stability, the idea of outlawing it should not be completely ruled out.
Statements like these, as well as crackdowns from regulators like the SEC, have influenced BTC’s recent bearish trend. BTC’s value has only increased by about $1,500 since the beginning of the month. The asset briefly traded above the $25,000 mark earlier this month before quickly falling back below it.
Overall, the asset’s trend has fizzled, indicating a slowdown from its bullish uptick. BTC appears to have support at $23,800 in the 1-day time frame. If the asset falls below that level, we could see the largest cryptocurrency by market cap continue to fall.
In contrast, the chart shows upside liquidity just above $30,000. If BTC rises above its previous high of $25,000, the chances of a spike above $30,000 are high.
The Crypto Market Continues
Bitcoin is not the only asset in the market that has slowed from its recent rally. Ethereum has also slowed after reaching $1,700 for the first time in four months. Solana has also fallen 6.6% in the last 30 days from its high of $26 on the 9th of this month to trade below $23.
This drop is the result of one of several downturns experienced by the Solana blockchain, including a recent network outage over the weekend. Solana’s market cap has dropped by more than $1 billion between February 9 and February 27.
Meanwhile, despite a few minor bears, Bitcoin and other altcoins have begun to rise. Bitcoin has gained 0.8% in the last 24 hours, Ethereum has gained 2.3% following its upcoming Shanghai launch, and Solana has gained only 0.1%.
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