Bitcoin oscillated near $24K mark before settling below this key level at press time.
As investors continued to assess the U.S. central bank's ongoing discussion on monetary policy and jobs data suggesting that inflation would persist, Bitcoin turned uncertain.
Bitcoin's price has steadily declined after three failed attempts above $25K this week and in the previous one. Bitcoin has marked three consecutive days of losses after the price failed to progress beyond Tuesday's high of $25,288.
The largest cryptocurrency was recently trading at $23,936, down 2.09% over the past 24 hours and marginally higher in the last seven days.
According to on-chain analytics firm Santiment, the number of large Bitcoin holders, notably shark and whale addresses, is dropping as Bitcoin persists in a range between $23K and $25K.
🐳🦈 The amount of shark & whale #Bitcoin addresses are staying flat as the $23k to $25k price range continues. If the 1K-10K $BTC addresses begin to rise the way the 10-100 and 100-1K $BTC addresses have in the past 3 months, it would be a breakout sign. https://t.co/xs7D99BzQ1 pic.twitter.com/P7HwCGeMoT— Santiment (@santimentfeed) February 23, 2023
On the other hand, the category of holders with 10-100 BTC is still rising, while those with 100-1,000 BTC are staying flat.
It suggests that, if the number of shark and whale addresses, which are those who own 1000-10,000 BTC, begins to rise in a manner seen for small-holder BTC addresses in the last three months, this might be a breakout sign.
According to crypto analyst Ali, the key level for Bitcoin to hold if declines persist from current levels is the $23,400 level. Failing to hold above this level might result in a trip to the $22,700 level.
On the other hand, if a rebound is sustained at current levels and Bitcoin manages to flip the $24,200 level into support, a fresh uptrend might be kickstarted.
According to Ali, a key indicator, the aSORP behaves today as it did in 2018. "After it marked the bottom at 0.914, it jumped to 1.017, and now it's retesting the crucial 1.0 support. If this level holds, it will confirm the bull run," he said.