February has been a rollercoaster ride for cryptocurrency traders as market volatility has led to a high level of price uncertainty. After a strong start to the month, Bitcoin prices have since fallen, leading to the current bearish move. However, a little more than two weeks remain until the end of this short month, what else can speculators expect?
Current market status
Bitcoin has mostly traded higher this year, helped by lower inflation, which in turn prompted the Federal Reserve to raise rates at a slower pace.
Since the start of the year, trading at a high of $16,621, the world’s largest cryptocurrency by market capitalization has added as much as $8,000 to its value over a four-week period.
However, last week’s rate hike of 25 basis points was followed by a significant increase in non-farm payrolls, confusing markets.
The number of jobs came in at 517,000 versus an expected 185,000, leading many to question the Fed’s view that we are in a disinflationary cycle.
As macros confuse investors, the crypto industry faced more bearish sentiment when the U.S. Securities and Exchange Commission (SEC) cracked down on betting services, exacerbating an already grim situation.
Markets have mostly declined since then, with previous bulls consolidating gains made earlier in the month.
February Forecast
At the time of this writing, BTC/USD is currently trading at $21,690.20, its lowest level since January 20th.
Looking at the chart BTC continued to break through the key price level at $22,500 and appears to be moving towards lower support at $21,200.
In addition, the 10-day (red) moving average has reversed course sharply and is now approaching a downward crossover with its 25-day (blue) counterpart.
As a result of this downward shift, the 14-day relative strength index is now at a monthly low of 45.60 and is approaching the oversold area.
There is a high probability that BTC/USD will hit the floor at $21,200, however, if this point holds, bulls are likely to use it as an opportunity to make another break to $25,000.
Will the bulls give up on a break below $21,200 this month? Let us know your thoughts in the comments.
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Credit : news.bitcoin.com
