• Bitcoin’s RSI is back at square one after a 5% overnight price drop
• BTC/USD traded flat around $22,400 at the March 3 Wall Street open
• Analysts remain divided over the odds of a recovery
Bitcoin Price Settles at $22.4K
Bitcoin’s RSI is back at square one as the mood among traders becomes uncertain following 5% BTC price losses overnight. 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.
RSI Retraces Bull Run
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading flat after an earlier flash crash saw $1,000 shaved off in minutes. Concerns over the fate of Silvergate Bank exacerbated existing market cold feet to spark a margin call cascade to $22,000.
Analysts Divided Over Recovery Odds
Risk-off trader Crypto Tony took profits and moved his stop loss into profit so it was risk free. Fellow trading account Daan Crypto Trades suggested that Bitcoin could see a mirror-like recovery to produce an inverse version of the classic „Bart Simpson“ chart structure. Popular trader and analyst Pentoshi took a step back, saying he „did not know“ what might lie in store for markets.
Flash Crash Sparks Margin Call Cascade
Hopes for an inverse „Bart Simpson“ on BTC were dashed as concerns mounted over Silvergate Bank’s fate and sparked a margin call cascade driving prices down to $22,000. Despite some signs of recovery since then, analysts remain divided on whether or not there will be further downside movement in coming days.
Traders Remain Cautiously Optimistic
Despite uncertainty among traders about future movements in price, many remain cautiously optimistic about Bitcoin’s long term prospects with some taking advantage of short-term opportunities where possible. Ultimately only time will tell if these short-term fluctuations have any major impact on overall market sentiment towards cryptocurrencies going forward.