What’s in store for Bitcoin on Valentine’s Day?
Photo by: Jamie Street – Unsplash
Bitcoin is trending in the red in sync with a calendar date celebrated by millions, San Valentin; the cryptocurrency is showing anything but love to short-term investors. After a key rally from a low of $16,500, the cryptocurrency began a decline amid an increase in regulatory scrutiny against the industry.
At the time of writing, Bitcoin (BTC) is trading at $21,600 with sideways movement in the last 24 hours. In the last seven days, BTC recorded a loss of 6%. Other cryptocurrencies in the top 10 by market capitalization are recording similar or steeper losses. The entire market is painted red for Valentine’s Day.
Love it or hate it, 2 Bitcoin price scenario for Valentine’s Day
Valentine’s Day may come second for Bitcoin investors as global markets prepare for the upcoming Consumer Price Index (CPI), a proxy for measuring dollar inflation. The US will publish the calculation tomorrow.
In the past year, the US central bank (Fed) has raised interest rates to slow inflation. Bitcoin, crypto and traditional markets have rallied amid expectations that the financial institution will pivot its monetary policy.
However, a peak in tomorrow’s CPI print and a strong US market, as shown by recent data, could give the Fed room to continue tightening monetary policy. This decision will cause more pain for Bitcoin.
According to on-chain analytics, Jarvis Labs suggests the market is trending to the downside, with Bitcoin hitting “typical overbought levels on the 30-day return.” The firm claims that BTC’s price action “usually” stops after reaching these levels on the metric.
Jarvis Labs registers confluence with the metric about, suggesting a pause in BTC’s bullish momentum with other metrics. In addition, BTC holders have been taking profits aggressively as the cryptocurrency pierced $20,000.
Jarvis Labs offered two scenarios for tomorrow’s CPI print and the potential for Bitcoin in the coming weeks:
Based on the resistance and support levels, investors have two paths forward. If the CPI print is at par or lower than the market expectation of 6.2%, prices could run slightly higher this week, with potential buyers looking for a post-confirmation listing. However, given the rise in sentiment and risk metrics, the other path towards $19,750 seems more likely. A re-visit to $20,000 would represent good buying levels for traders (…).
At these levels, the firm believes that BTC will operate at “bargain prices.” These levels could represent an opportunity for optimistic investors, Jarvis Labs said.