2023-2-14 01:56 |
Bitcoin is trending in the red in synchrony with a calendar date celebrated by millions, San Valentin; the cryptocurrency is showing anything but love to short-term investors. Following an important rally from a low of $16,500, the cryptocurrency began a descent amid an increase in regulatory scrutiny against the industry.
As of this writing, Bitcoin (BTC) trades at $21,600 with sideways movement in the last 24 hours. In the previous seven days, BTC records a 6% loss. Other cryptocurrencies in the top 10 by market cap record similar or steeper losses. The whole market is painted red for Valentine’s Day.
Love It Or Hate It, 2 Bitcoin Price Scenario For Valentine’s DayValentine’s Day might come second for Bitcoin investors as global markets brace for the upcoming Consumer Price Index (CPI) print, a proxy to gauge dollar inflation. The U.S. will publish the metric tomorrow.
Over the past year, the U.S. Federal Reserve (Fed) has been hiking interest rates to slow down inflation. Bitcoin, crypto, and traditional markets have been rallying under the expectation that the financial institution will pivot its monetary policy.
However, a spike in tomorrow’s CPI print and a strong U.S. market, as shown by recent data, could provide the Fed with room to continue tightening monetary policy. This decision would translate into more pain for Bitcoin.
According to on-chain analytics, Jarvis Labs hints at the market trending downside, with Bitcoin hitting “typical overbought levels on the 30-day returns.” The firm claims that BTC’s price action “usually” pauses after reaching these levels on the metric.
Jarvis Labs records confluence with the metric about, hinting at a pause in BTC’s bullish momentum with other metrics. In addition, BTC holders have been taking profit aggressively as the cryptocurrency pierced $20,000.
Jarvis Labs offered two scenarios for tomorrow’s CPI print and its potential for Bitcoin in the coming weeks:
Based on the resistance and support levels, investors have two paths moving forward. If the CPI print is at par or lower than the market expectation of 6.2%, prices may run higher for a bit this week, where potential buyers may look for an entry after confirmation. However, given the spike in sentiment and risk metric, the second path toward $19,750 appears more likely. A revisit to $20,000 would represent bargain purchase levels for traders (…).
At those levels, the firm believes BTC would operate at “bargain prices.” These levels could represent an opportunity for optimistic investors, Jarvis Labs said.
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