Bitcoin (BTC) is in a fighting mood this week as the weekly industry picks up a bullish run and wipes out several weeks of turmoil – can it keep rising?
After challenging $42,000 over the weekend, there was a cautious sense of optimism as higher levels continued to play. There was new pressure on Sunday, with the night advancing which attacked $43,000 before the reunification.
With Wall Street opening Monday to add to the turmoil in major tech stocks seen late last week, the environment for cryptocurrency traders in February will be interesting.
Therefore, with its impressive positive correlation, Bitcoin is sensitive to up and down movements, but stocks are unanimously refusing to move in the same direction.
While searching for a benchmark, traders still remember the January lows, and they are also fresh in the minds of analysts who do not rule out the possibility of a return to $30K.
With just a week to look forward to its latest breakthrough ahead, Cointelegraph takes a look at the bitcoin market and five forces at play that could help determine the direction of BTC’s price movement.
Bitcoin avoided a major crash
The weekend failed to match bitcoin’s newfound bullishness, despite its lower volume that usually provides fertile ground for both “fakes” and “fakes”.
$40,000 was held as support and analysts were keen to see $41,000 as a long-term basis going forward.
“This is how I see the situation. As long as BTC has $39,000 (as previously mentioned), it will open next year,” summed up trader and analyst Pentoshi on Sunday.
“Imo 80% of alternatives will fall behind, 20% will advance/follow.”
The 2022 annual open is around $46,200, the price is approaching after BTC/USD broke through the resistance area over the weekend to reach the local highs of $43,070 on Bitstamp.
Hourly BTC/USD light chart (Bit Mark). Source: Trading View
A credible Crypto analyst and trader believes that the recent moves may indicate that Bitcoin has begun its fifth move in a multi-year series of impulsive moves.
If this is the case, altcoins will likely lose focus on BTC first, he added, just like the classic bullish trend.
“If my target is correct and BTC is really starting the last 5th wave here then expect BTC to steal the supply, pump hard, altar takes the first hit but then rises/picks up just like we saw during the last two beats (3-14K and 12-65K)” , explained.
If we look at the flaws, whales might have the answer. Whalemap Network monitoring data shows that $38,000 is still very important to whales, which began building their sites there last week.
Meanwhile, $43,000 per BTC/USD is the highest since January 17, the largest cryptocurrency that has settled more than two weeks of losses in just a few days.
Inflation remains ‘real’ until CPI in January
Stocks provided a springboard for Bitcoin to break out of the $30,000-$40K range last week, but “only a rally” is not what characterizes the big assets.
Among the big tech companies, this story was one of Amazon’s gains and Meta losses, creating a strange dichotomy that ended up using Bitcoin in their favour.
Could the same trend continue this week? Equities are not alone as Oil continues to gain momentum and with it the inflationary story grows.
Inflation will outpace the Fed. “Inflation is real,” veteran trader Peter Brandt said Monday, looking at US bonds.
This is due to the influx of liquidity that has been added over the past two years. $$ plentiful. The Fed is way behind when it comes to raising interest rates. The 10-year bond approaches 2.35. % in the short term and 3.0% in the next few years. »
He added that inflation is still very modest compared to the periods of the last century, but it is still far from that.
Meanwhile, Bentoshi predicted oil prices would rise above $100.
“It looks like at this rate, the price of oil will cross $100. A 20% increase in the first 5 weeks of the year, and 13% in January. If you’ve liked inflation before, you’ll love it when the price of oil hits $100. Consumerism is on the rise.”
Thus, Monday’s Wall Street open could confirm Bitcoin’s victory or put the party at risk once again. At the time of writing, futures are showing a dip after the best week for the S&P 500 in 2022.
Meanwhile, data shows that Bitcoin’s relationship with Nasdaq is slowly weakening.