Bitcoin’s price declined last week and is below $22,500 currently. Bitcoin moved down after consolidating halfway between the Fibonacci 161.8 and Fibonacci 100 level last week. The RSI remains in neutral zone. Bears now are consolidating their control to push the price further down to the Fibonacci 100 support in medium term. It needs to be seen whether bulls will muster enough strength to reverse the driving of the price down toward the support.
Markets ended on upside note last Friday as investors cheered the Institute for Supply Management’s strong Services PMI report as evidence that the US economy could still achieve a “soft landing.” Meanwhile funds inflow data indicated investors put more money into short-Bitcoin funds and Australia’s Central Bank plans to complete this year its digital currency pilot projects while crypto traders are concerned about liquidity thinning.
Short-bitcoin funds had $10 million in inflows during the week ended February 24, according to crypto asset manager CoinShares. Short funds provide investors a bearish exposure to an asset`s price – investors earn profits from the cryptocurrency`s price declines. At the same time data indicated that long-bitcoin funds lost $12 million, the third straight weekly outflow.
The Reserve Bank of Australia has revealed a set of projects ranging from offline payments to bond settlement to securities trading that will develop use cases for a digital dollar, the eAUD. The testing phase for its digital currency started last August and the RBA is looking to complete its central bank digital currency pilot by mid-2023.
Crypto traders are concerned about liquidity thinning. Liquidity refers to the ability of the market to absorb large buy and sell orders at stable prices. Data from Paris-based crypto data provider Kaiko show bitcoin`s 2% market depth for USDT pairs aggregated from 15 centralized exchanges has slipped to 6,800 Bitcoins, the lowest since May 2022.
