Experts Warn Investors to Look Out For Three Things Regarding Bitcoin
Bitcoin seems to be walking on a thin line as the world-leading cryptocurrency fails to capitalize on its January momentum.
Investors are voicing that the market is forming such circumstances which can send bitcoin back to the $20k mark. At the start of the new week of 2023, Bitcoin was relatively bearish and priced at $22,986.
As far as what may yet be proved to be justification for some of those predicting a big BTC price decrease, BTC once more finds itself below the $23,000 mark.
Asian markets were among the first to fall against the USD as the USD gained. The primary reason that stock and crypto markets declined is the strong employment report published by the US Department of Labor.
The record job creation means the Feds now can further spike the interest rate, this has sent the USD high and caused a decline in the cryptocurrencies price such as Bitcoin.
Bitcoin Seems To Be Entering the Bearish
It seems that the chances of a further rise in interest rates will significantly weaken the spending capacity of investors.
Investors pulling their money out of the market will significantly lower the demand for Bitcoin which means bears are ready to capture the market.
How low Bitcoin can go depends on how much interest rate the Feds increase in the month of March. Experts do believe that chances of inflation have now decreased, and the market can bear further price hikes.
On the flip side, it is also extremely important to note that the cryptocurrency market is highly speculative and that past performance is not indicative of future results.
Just one piece of good new can send the price up and one piece of negative news can break the entire market.
Market Experts Say That Before Investing in Bitcoin, Investors Should Look These Three Signs
Feds Officials to Speak Again
As compared to the first week of February, the second week of February is calmer and more stable in terms of monetary outlooks.
But Feds are expected to address the market soon as they have to inform whether the interest rate will be further increased in March 2023.
The Feds Chair Jerome Powell might suggest some policy changes. Previously the Feds increased the interest rate by 0.25%.
As some key economic data has been published analysts are debating how and when the Fed will shift from its current monetary policy. The shift in monetary policy will directly alter the price of Bitcoin.
Contrasting Trends: Miner Relief amidst Decreased Demand for Bitcoin
In terms of Bitcoin, the technical indicators of a currency show signs of some stability in a volatile market.
This is a positive indicator for investors, but how long Bitcoin will remain stable and where its price goes go next will play a decisive role in its long-term price.
Market experts do believe that the coming six days are most important for Bitcoin. After these six days, things might wind up being favorable for the price of Bitcoin.
High Volatility Might Kick In
Some technical indicators are still surging and paving way for slowing down the increase in the price of BTC. Conversely, "Bitcoin's NVT is exhibiting signs of price stabilization and the beginning of a new market regime.
Another positive outcome comes as “Santiment, “an online platform shares the data indicating that some relatively small wallets carrying Bitcoin (BTC) have expanded this year.
This shows that the majority of investors are still active in adding Bitcoin to their digital portfolios. This high buying movement came after BTC crossed the $20k mark. In total, 620k wallets have added Bitcoin to their digital portfolios.
Investors need to understand that predicting Bitcoin price in future is difficult and there has been a lot of uncertainty about it. However, Bitcoin must show resistance at its current price level and refuse to touch the $20k mark.