Bitcoin Price Outlook for February
If we look at the February outlook, we can see that bitcoin has traded higher earlier this year which has been fueled by lower levels of inflation and this in turn has prompted the Federal Reserve to slowly hike rates. Have done Since trading at a year high of $16621 at the start of the year, the world’s largest cryptocurrency by market capitalization has added $8000 to its value in just a span of 4 weeks, adding to its potential. However, last week’s rate hike which was a move of 25 basis points followed by a significant increase in non-farm paroles showed data which confused the market.
Payrolls came in at 517,000 versus the expectation of 185,000 raising a lot of questions about the Federal Reserve’s view that we are in a deflationary cycle.
With macro elements confusing investors, the crypto industry saw more bearish sentiment when the US Securities and Exchange Commission cracked down on services, adding to an already dismal situation. The market has since moved mostly down and the bulls have been consolidating gains from earlier in the month. At the time of writing this, BTC /USD is currently trading at $21,690.20 which is its lowest point since January 20th.
Looking at the charts, bitcoin has extended a major breakout above $22500 and is moving towards the lower support at $21,200. Additionally, the 10-day red moving average has moved strongly and is crossing down with its 25-day (blue) counterpart. As a result of this decline, the 14-day Relative Strength Index now sits at a month’s low of 45.60, and is now close to oversold territory. There is a strong possibility that the pit will hit the low of $21200 and if it makes this point then it could possibly have another run towards the $25000 mark and as such we are taking the opportunity.
