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Waiting for inflation data this week: Will Bitcoin hold above $50,000?

Witness Bitcoin BTC Price Trading stagnated towards the end of February as investors became more cautious after the previous wave of optimism. Although the price of the largest cryptocurrency crossed the $50,000 mark, it lost its bullish momentum over the past two weeks.

Remarkably and unusual, the price of Bitcoin was unaffected by the rise in risk appetite in financial markets last week. Which could reinforce the hypothesis of overbought in the digital currency market.

Confidence in global financial markets generally improved last week, driven by... Nvidia's exceptional performance And its encouraging expectations for the first quarter of 2024. The chip industry giant helped the S&P 500 index reach a new all-time high, and it also helped the Japanese Nikkei index achieve the same result after 34 years.

Some analysts remain optimistic about the potential for a rebound Bitcoin BTC Price. While others believe that reality is imposing itself with low purchasing pressure versus sales operations on the part of certain players.

The coming days will witness important developments that will move the... Digital Currency MarketEspecially with the release of crucial inflation data in the United States of America, which coincides with the close of the month characterized by market fluctuations.

On the other hand, the timing of these developments raises particular concern, especially given the internal dynamics of Bitcoin in the run-up to the “halving” event, which is expected to take place around April 15. nicehash platform data.

Main factors affecting the price of Bitcoin during the week:

US inflation data

Basic personal consumption expenditures (PCE).), which will be released on Thursday, are the main data that will be released this week. Because it is the Federal Reserve's preferred indicator for tracking inflation. Economists expect the monthly rate of core personal consumption expenditures to rise 0.4% in January, which would be the fastest measure in a year. This could affect the US Federal Reserve's decisions regarding interest rates.

Investor behavior

See some Analysts It is possible that investors could make a profit, which could cause prices to fall.
SOPR analysis of short-term investors indicates that they are likely to sell. This could push the price to the $48,000 level, which corresponds to the 38.2% Fibonacci retracement level, as shown in the attached chart.

Bitcoin BTC Daily Price Chart
Bitcoin BTC Daily Price Chart

“Bitcoin pre-shutdown peak” theory

Some analysts estimate that the Bitcoin price could see a correction of between 19% and 40%, similar to what happened before previous “halving” events.
Pre-Halving Top Theory is an analytical theory in the field of digital currencies. It aims to predict how the price of Bitcoin will change during the period leading up to the “halving” process, which occurs approximately every 4 years.
This theory assumes that the price of Bitcoin tends to peak (peak) a specific period of time before the halving. Then it begins to fall before rising again after the halving.
Read also: Will the price of Bitcoin (BTC) increase before the next halving?

This theory is based on historical observation of Bitcoin price behavior before and after these events. It has been noted that the price of Bitcoin tends to increase significantly sometime before the halving date, due to expectations that the reduction in the supply of the currency will cause its value to increase.

Bitcoin faces an intersection of macroeconomic factors, investor behavior and cryptocurrency market expectations. It is important to monitor upcoming economic data and technical price movements in the coming period to get a clearer idea of ​​Bitcoin's future direction.