The bitcoin rate fell below $23 thousand. As of 19:00 Moscow time, the first cryptocurrency is trading at $22.8 thousand. According to CoinGecko, the asset fell by 0.7% per day, writes RBC Crypto.
The cost of bitcoin decreased by $1.3 thousand after it rose above $24 thousand on the evening of Friday, February 3. The coin could not stay near this level, during the weekend its rate fell to $22.8 thousand and continued to fall in Monday. The share of the first cryptocurrency in the market is 40%.
“Bullish drivers in the market persist”
Cryptanalyst Viktor Pershikov
The current dynamics of bitcoin fully fits into the growth structure of January. After an active increase in prices in the market and capitalization in general, now many assets have moved into the stage of price rollbacks and corrections, which characterizes the rise in prices for cryptocurrency as normal. Some participants fix profitable purchases at current levels, others open sales within a long-term trend, which leads the price to a slight decrease.
At the same time, bullish drivers in the market remain, and I believe that after BTC correction to the $21-20 thousand area, we will see continued growth with targets at $25 thousand and $27 thousand. The situation before the March Fed meeting will play a big role: if the market will continue to bet on a slowdown in the tightening of the monetary policy, then the prices of stock assets and cryptocurrencies will grow synchronously, as there will be a demand for risky instruments.
If the market underestimates the Fed, and the hawks prevail, especially against the backdrop of a strong labor market, we may see a deeper correction in both stocks and the cryptocurrency market. However, this is not the main scenario now.
“Multiple Scenarios”
ENCRY Foundation co-founder Roman Nekrasov
Bitcoin has several scenarios this week. Or it will test the level of $23.5 thousand, break through it and go further up. Or bitcoin will drop to $21.5 thousand.
The first growth scenario I rate as unlikely. The current bitcoin rate already takes into account all the positive signals and news that the market received in previous weeks, including the slowdown in the rate of interest rate increases in the United States. The market has not received any other positive impulses and is unlikely to receive it this week. There is still a week left before the publication of CPI, and just next week, growth is more real.
Holding current positions this week will already be a good result for bitcoin. But given that Bitcoin has been growing rapidly throughout January, it is not worth betting on the continuation of the same pace. I expect a correction and a decline to $22.2K. Many expect a drop to $21.5K, but the crypto market never lives up to the hopes of the majority. When so many people place buy orders at some level, the chance that Bitcoin will stay at that level is minimal. Even if it drops to $21,500, it will be immediately bought out by those who are waiting to increase their position in bitcoin.
In general, the week does not promise significant changes in the rate of the cryptocurrency, there will be neither growth nor a sharp fall. I think it’s worth getting ready for a sideways week.
“It’s worth keeping an eye on investor sentiment”
Head of Analytical Department AMarkets Artem Deev
Bitcoin is very clearly correlated with the US stock market, so it is worth keeping an eye on investor sentiment in order to predict trends in the crypto market. It is clear that the Fed’s latest 0.25% rate hike has been positive for the exchanges, with investors becoming increasingly hopeful that the period of monetary tightening is nearing its end, boosting demand for risky assets.
For sure, during February, we should expect that Bitcoin will be in the range of $20-25 thousand, since both inflation data in the US and the Fed’s actions increase positive sentiment in the markets. In addition, China is expected to recover after the lifting of covid restrictions – it is predicted that growth in demand from China will become a driver for global supply chains.
In the absence of negative (geopolitics or new turmoil in the crypto market associated with exchanges), the value of the first coin will be stable with an upward trend associated with an increase in risk appetite from investors.
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