Bitcoin Price Outlook for February – Market Updates
February was a rollercoaster ride for cryptocurrency traders, with market volatility resulting in high levels of price uncertainty. After a strong start to the month, the Bitcoin-Prices have since plummeted leading to a recent bear run. However, what else could speculators expect from this short month a little over two weeks from now?
Current market status
Bitcoin has traded higher for most of this year, driven by the lower inflation been favoured, which in turn has prompted the Federal Reserve to raise interest rates more slowly.
Since the start of the year with a high of $16,621, the post market capitalization largest cryptocurrency the world has increased in value by up to $8,000 in a four-week period.
However, last week’s rate hike, which was a 25 basis point move, was followed by a sharp rise in nonfarm payrolls, confusing markets.
Payrolls came in at 517k versus 185k expectations, leading many to question the Fed’s view that we are in a disinflationary cycle.
As macro elements confuse investors, the crypto industry saw bearish sentiment as the US Securities and Exchange Commission (SEC) cracked down on staking services, compounding an already dire situation.
After that, markets have mostly moved lower, with previous bulls consolidating their gains from earlier in the month.
Outlook February
As of this writing, BTC/USD is currently trading at $21,690.20, its lowest since Jan. 20.
Looking at the chart, BTC has extended a breakout above a key price floor at $22,500 and appears to be heading towards lower support at $21,200.
Additionally, the 10-day moving average (red) has changed course significantly and is now approaching a bearish cross with its 25-day counterpart (blue).
As a result of this move down, the 14-Day Relative Strengthindex now at a monthly low of 45.60 and now approaching oversold territory.
There is a strong possibility that BTC/USD will collide with a bottom at $21,200, however, if this point holds, bulls are likely to use this as an opportunity to make another run towards $25,000.
Will the bulls reject a breakout below $21,200 this month? Let us know your thoughts in the comments.
photo credit: Shutterstock, Pixabay, WikiCommons
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Source: Crypto News Deutsch
