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Bitcoin price is yet to give clear technical information on the next trend whatsoever, despite a 6 percent deep in the past week.
For the first time since the year began, the price of Bitcoin seems to have lost its rising momentum and had a bearish weekly bar after hitting $24k and closing below $23k. Short-term holders and Bitcoin miners have been observed taking profits in the past few weeks after a painstaking year-long bear market. Nonetheless, long-term holders continued to stash more coins as reported by the on-chain intelligence platform Glassnode.
According to market data provided by Binance-backed Coinmarketcap, Bitcoin price exchanged around $22,890 on Tuesday, up approximately 35 percent in the last 30 days. The relief rally could be obliterated if the bearish sentiment sustains in the coming weeks, thus pushing the asset to the next strong support of around $18k.
A similar narrative has been reiterated by Yuya Hasegawa, crypto market analyst at Japanese bitcoin exchange Bitbank, who noted that the high-impact news may already be factored in current prices. Notably, the United States increased its federal interest rates by 25 bps as expected. Additionally, the Labor Department reported the strongest gain in nonfarm payrolls, 517,000 for January, far higher than the 187,000 Dow Jones estimate.
“Bitcoin has survived a week packed with important events and economic data while maintaining the price around $23,000, but the market may have exhausted reasons to buy the coin and could be subjected to profit-taking sell orders this week,” Hasegawa noted.
According to Noelle Acheson, economist and writer of the Crypto is Macro Now newsletter, the possibility of slow market growth in 2023 should be a factor crypto traders have to consider. Furthermore, most economists believe there will be a recession soon if not slow economic growth.
“Expectations are shifting to more tightening, and higher rates for longer (what the Fed has been saying all along), which is not good for risk-on assets,” Acheson noted.
Closer Look at Bitcoin Price Action
Bitcoin price is yet to give clear technical information on the next trend whatsoever, despite a 6 percent deep in the past week. According to a popular crypto analyst on Twitter Inc called Rekt Capital, Bitcoin traders should not conclude the last trend is over or a new trend is forming. As such, the analyst thinks the next few weeks will be decisive for the next quarter’s outlook.
Some initial, small #BTC rejection from around the ~$23400 level but no conclusive technical moves just yet
Still worth watching$BTC #Crypto #Bitcoin https://t.co/OPK9hjIqnK pic.twitter.com/UxqeAS9Kym
— Rekt Capital (@rektcapital) February 6, 2023
Should the Bitcoin bulls regain momentum in the coming weeks, analysts forecast $30k will be the next landing position. As a result, the altcoin market, which precedes Bitcoin from a historical perspective, could post more gains. Otherwise, a capitulation from current levels could push Bitcoin price below $18k and perhaps retest $15.5k.