20.02.202317:14 Forex Analysis & Reviews: Bitcoin: Bears have one last chance

The bitcoin cryptocurrency unexpectedly increased last week, despite the absence of any justification. Certainly, the UK and US inflation figures were two significant events that occurred last week. Although they were polar in character, British inflation has never shown much interest in cryptocurrency traders. As it turns out, only the data on American inflation was able to garner attention. But, bitcoin had a significant increase the day after the study was released, so we do not think that there is any connection between these two events. It's important to keep in mind that the most recent upward trend started after the January report on the same inflation was released. The consumer price index then decreased from 7.1% to 6.5%. In other words, the slowdown can be considered significant. And since the slowdown is significant, the Fed could be expected to soften its monetary rhetoric. And given this fact, risk sentiment may rise across the board in all markets. We faced a very different inflationary situation in February. Just 0.1% in annual terms of inflation slowed, but the Fed officials promptly stepped up their monetary language. Given that markets currently anticipate a longer and stronger rate rise, there was no way that the price of bitcoin could have increased in any way.

Consequently, it is inappropriate to look for the causes of fundamental events. The bitcoin market is fairly small. As a result, since "whales" are followed by "hamsters," the movements of huge players may probably prompt even larger movements. It is theoretically impossible for the euro or the pound to move by 7–10% per day. This is a typical occurrence for cryptocurrencies like bitcoin. As a result, investors continue to be drawn to bitcoin as an investment tool because of the potential for quick, significant profits. So, the causes of bitcoin's increase last week were theoretically impossible. Keep in mind that the price of bitcoin has now surpassed $24,350. This level has been specifically marked as important for a very long time. Since it was surpassed, bitcoin's growth might continue. The maximum starting on August 15 is the new, additional level of $25,211 that we have introduced. If this threshold is crossed, the emergence of a "bullish" trend will make it our primary option. Yet, there are still just a few important causes for this.

The "bitcoin" quotes managed to surpass the level of $24,350 throughout a 24-hour period. On the way up, just the auxiliary level of $25,211 is left. If it does not stand either (and thus far, everything is proceeding exactly in this manner), a bullish trend may start, with the level of $29,750 serving as the initial target. If we take a detached look at the current state of affairs, we continue to think that a drop to $15,500 is more probable. Truth be told, the market indicates that consumers are prepared to make purchases.