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

Bitcoin RSI is back at square one as the mood among traders becomes uncertain after 5% BTC price losses overnight.

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

Hopes for an inverse “Bart Simpson” on BTC

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading flat after a flash crash overnight 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 on the day.

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

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.

I know we’re all thinking it. #Bitcoin pic.twitter.com/uNxedPrgDR

— Daan Crypto Trades (@DaanCrypto) March 3, 2023

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,” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, added 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, its score now matching its position from the start of 2023.

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

It was “still possible,” he nonetheless cautioned, that BTC/USD would dip to $21,300.

#Bitcoin 2019 vs. #Bitcoin 2023

Took a bit longer, but we saw the dump as expected (see further tweet).

USDT. Dominance is facing strong resistance, and $BTC is right on the trendline, as in ’19. ($21.300 still possible).

Scenario still intact as long as the trend line holds pic.twitter.com/a1NoYg8Jt6

— ⓗ (@el_crypto_prof) March 3, 2023

$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 analysis of the 4-hour chart stated.

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

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