Valentine’s Day and Bitcoin’s Current Situation
Valentine’s Day is quickly approaching, and the bitcoin market is sending conflicting messages. In particular, Bitcoin is presently trading around $21,600 and has barely changed in the past day. However, the top cryptocurrency has suffered a 6% decline during the past week.
Consumer Price Index: An Important Metric for Bitcoin Traders
Investors in the regular market as well as the cryptocurrency sector should pay close attention to the impending Consumer Price Index (CPI) print. The monetary policy of the U.S. Federal Reserve (Fed), a financial organization, directly affects these markets as it raises interest rates to combat inflation.
Market Trend Analysis of Bitcoin by Jarvis Labs
The market is downtrending, with Bitcoin approaching “normal overbought levels on the 30-day returns,” claims on-chain analytics company Jarvis Labs. The company asserts that once certain thresholds are attained, the price of BTC “typically” pauses. Additionally, evidence indicates that Bitcoin owners have been making money since the cryptocurrency’s price hit $20,000
Two Possibilities for the Future of Bitcoin
Investors can choose between two possibilities based on levels of support and resistance. Prices may briefly increase if the CPI report is identical to or less than the predicted 6.2%. A second scenario, with prices potentially falling below $19,750, which Jarvis Labs calls “discount prices,” might happen if the mood and risk measures increase. Optimistic investors may see an opportunity in this.