Valentine’s day inflation report will be crucial for Bitcoin

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Last Updated on 6 November 2023 by CryptoTips.eu

All throughout 2022 the voice of Federal Reserve Chairman Jerome Powell was crucial for both stocks and crypto markets. In the first few months of 2023, this has not changed. After Jerome indicated last week that the strength of the US job market might not lead to an automatic halt in global interest rate hikes any time soon, investors are now especially looking forward to his comments next Tuesday. That is not only Valentine’s day, but also the release of the long-awaited new US inflation report.

Bitcoin and other major digital currencies are in waiting mode right now. As you can see on most daily charts, it’s just another day of consolidation in February after the digital asset rally that started in January 2023 has paused. Cryptos seem to be waiting for a major catalyst to get going again, which could create new volatility (either up or down).

Advertentie.

Support at $20,000

Bitcoin’s strong start to the year seems over for now.

Said Edward Moya, an analyst at broker Oanda.

After hitting some key technical resistance just above the $24,000 level, Bitcoin is entering consolidation mode until we see the next big move in the bond market.

Moya said.

Bond market volatility will be insane after the inflation report on Valentine’s Day, which could mean Bitcoin could slide to the $20,000 level if equities are also tamped over the next few sessions.

Well-known Dutch analyst Michael van de Poppe, aka Cryptomich, largely agreed, although he points to the region around $21,000 as a new support level.

If these analysts are correct, expect a pullback before high volatility next Tuesday.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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