BTC/USD Price Analysis – February 20, 2023

Daily Price Outlook

BTC/USD is currently down 1.27% in the last 24 hours and is trading at $24,372.00. However, its value has risen by more than 11% in the last seven days. The recent price surge for bitcoin demonstrates the growing demand and trust in the cryptocurrency sector.

As a result, several other cryptocurrencies have also experienced a significant increase in their value.

Update on SEC Crypto Regulatory Policies

On February 19, Chinese journalist Colin Wu shared an article by Bloomberg Opinion Columnist Matt Levine on his official Twitter account. Wu pointed out that Levine used an example to illustrate the Securities and Exchange Commission's (SEC) authority in identifying tokens as securities.

Levine highlighted the SEC's power to establish regulatory frameworks for the cryptocurrency industry and how "regulatory investment advisors" may indirectly regulate cryptocurrencies.

Levine also pointed out the SEC's use of financial advisors to create regulations for cryptocurrencies indirectly. Additionally, as the SEC governs investment funds, cryptocurrencies would also fall under its scrutiny.

The BTC/USD strengthened as investors re-entered the volatile digital asset market, buoyed by regulatory assurances about the SEC's intent to regulate the cryptocurrency sector.

Riding the Wave: How Bitcoin Ordinals Could Drive a Massive Shift in the Crypto Market

Ordinal Inscriptions are digital assets that were launched in January 2023 and are printed on a satoshi, the smallest unit of value in the Bitcoin currency. They function similarly to non-fungible tokens (NFTs) and have experienced a significant increase in demand since the end of January. As of February 19, over 150,000 inscriptions have been created.

The Ordinals Protocol enables users to engrave references to digital art into small payments on the Bitcoin blockchain, effectively creating Bitcoin-based NFTs. This offers a new and highly beneficial use case for the oldest cryptocurrency chain. The introduction of Bitcoin NFTs will improve network security and encourage developers to add new features, ultimately benefiting the entire ecosystem.

It's worth noting that the launch of the Ordinals Protocol coincided with a significant increase in the price of BTC/USD.

BTC/USD Intraday Technical Levels

Support     Resistance

23993.1      24894.3

23683.0      25485.2

23092.0      25795.4

Pivot Point: 24584.1

BTC/USD – Technical Outlook

From a technical standpoint, Bitcoin is trading sideways and has been holding within a narrow range of $23,700 to $25,200. In terms of immediate resistance for the BTC/USD pair, it currently exists at $25,200, and a breakout above this level could potentially push the BTC price toward the $26,000 mark.

The leading technical indicators, such as RSI and MACD, are exhibiting divergence. RSI is currently holding above 50, in a buying zone, while MACD is forming histograms below 0, in a sell zone. This divergence often occurs when there is a state of indecision among investors.

On the lower end, Bitcoin's immediate support is currently at $23,750. If the price falls below this level, the next support for BTC would be at $22,850, which is a level determined by the 50% Fibonacci retracement mark.

Later this week on Wednesday, the FOMC meeting minutes will remain in focus and could potentially drive price action in BTC.