Bitcoin retested the support level of $22,350 amid the market correction before spiking up to trade above the support level.
The flagship cryptocurrency currently trades at $22,689 at the time of writing this report.
The digital gold slipped back below $23,000 on Thursday morning amid comments from Federal Reserve officials that the fight to curb inflation is far from over.
Responding to the movement of BTC, altcoins including Ethereum also took a dive downward while Matic seems to be the only token withstanding the current downward trend.
While bitcoin is down by 2.2% at the time of writing this report, Matic is up by 2.54%, data from CoinmarketCap shows. Shiba Inu token also shed 4% while the crypto market capitalization fell 1.2% to $1.07 trillion in the last 24 hours.
Investors King earlier reported that bitcoin could retest the support level of $22,000 before a possible upside moves to $25, 000 as positioned by Smart Contracter.
Recalled that the highly followed crypto analyst had earlier disclosed that Bitcoin will dive below the $23,000 mark.
Speaking on the market movement, the Co-Founder of DEXTools noted that 2023 could be a bullish year for the crypto market if the global economy can recover from its current financial and economic crisis.
He added that market sentiment will resume bullish if Bitcoin crosses the $25,000 mark.
He said,” The market could remain bearish if economic uncertainty increases as restrictive regulations may be imposed. However, if Bitcoin reaches $25,000, that could mean increased confidence and acceptance of cryptocurrencies leading to increased investment and widespread”.
Meanwhile, the Chief Executive of British Virgin Islands-based crypto exchange BTSE, Henry Liu, noted that the broader crypto market is still in a recovery trend after the sharp price falls last year. He added that the trend could continue in the mid-term.
“This trend could potentially continue into the near term, helping BTC surge past the all-important $25,000 psychological threshold. If this were to happen, a bull run may be in the offing,” he said.