Bitcoin is moving in the red in sync with the calendar date celebrated by the millions, San Valentin; Cryptocurrency demonstrates anything but love for short-term investors. After an important rise from a low of $16,500, the cryptocurrency began to decline amid increased regulatory scrutiny of the industry.
At the time of this writing, Bitcoin (BTC) is trading at $21,600 with a sideways move in the last 24 hours. Over the previous seven days, BTC has lost 6%. Other cryptocurrencies in the top 10 by market capitalization are showing similar or more severe losses. The entire market is painted red in honor of Valentine’s Day.
Love It or Hate it, 2 Bitcoin Price Scenario for Valentine’s Day
Valentine’s Day could take second place for bitcoin investors as global markets brace for the upcoming release of the consumer price index (CPI), a proxy for dollar inflation. The US will release the metric tomorrow.
Last year, the US Federal Reserve (Fed) raised interest rates to slow inflation. Bitcoin, cryptocurrency and traditional markets are rising in anticipation that the financial institution will change its monetary policy.
However, the spike in tomorrow’s CPI and strong US market as latest data show, may give the Fed the opportunity to continue tightening monetary policy. This decision will lead to even more pain for Bitcoin.
According to network analytics, Jarvis Labs is hinting at a market downtrend as Bitcoin hits “typical overbought levels on 30-day returns.” The firm claims that BTC price action “usually” pauses once these levels are reached on the metric.
Jarvis Labs captures a confluence with the near metric, hinting at a pause in BTC bullish momentum with other metrics. Additionally, BTC holders aggressively took profits as the cryptocurrency topped $20,000.
Jarvis Labs has come up with two scenarios for tomorrow’s CPI printing and its potential for bitcoin in the coming weeks:
Based on resistance and support levels, investors have two paths forward. If the CPI is at par or below market expectations of 6.2%, prices could rise slightly this week when potential buyers can expect entry after confirmation. However, given the surge in sentiment and risk metrics, a second path to $19,750 seems more likely. A return to $20,000 would represent a buy level for traders (…).
The firm believes that BTC will operate at “favorable prices” at these levels. These levels could represent an opportunity for optimistic investors, Jarvis Labs said.
Credit : www.newsbtc.com
