Blog

5 things to know about bitcoin this week

As bitcoin bulls fail to regain the ground they lost in February, the new week begins just under $22,000. BTC/USD is still close to three-week lows, despite some minor volatility toward the weekly close, as a new status quo with $22,000 as resistance emerges.

The largest cryptocurrency, on the other hand, is at the start of an important week of macroeconomic data, so there are many chances for volatility to return.

The United States Consumer Price Index (CPI) for January, which will be released on February 14, is the first of these.

Analysts will be keeping a close eye on how the cryptocurrency markets and the US dollar respond to the subsequent data prints throughout the week.

A glimmer of hope for those who hope that the Bitcoin price recovery in 2023 will continue is provided by data showing that whales are taking advantage of the opportunity to buy at the current levels within Bitcoin circles.

At the same time, a powerful new event on the chart is making some people uncomfortable. Can Bitcoin avoid a significant fall as its first-ever weekly “death cross” demonstrates?

 

10 predictions for crypto in 2023

 

  • Bitcoin’s “breakdown” on the weekly chart is confirmed.

 This event marked BTC/USD’s long-awaited retracement after it had experienced almost unhindered upward price action throughout January.

Now, the focus is on key support levels that are still holding, mostly long-term trend lines that were reclaimed as support during the run-up in January.

On February 13, well-known trader Crypto Tony provided a brand new update to his Twitter followers, confirming that $21,400 was the point at which the circumstance might become interesting.


  • “Most important” CPI print arrives

 

A portion of the commentary stated, “From there we can really assess whether the bulls have the capacity to save the bears or lead them to slaughter.”

With the release of the CPI for January on February 14, one data point is likely to dominate the macro landscape this week.

Inflation is expected to continue falling, which could continue to support risk assets despite a decline at the beginning of February.

A reorganization of how CPI is calculated adds complexity to the picture, but analysts question its significance in relation to the overall trend of inflation falling.

However, the print from this month is getting a lot of attention from people outside of crypto.

The CPI report on Tuesday is the most significant report to date. The Kobeissi Letter, a capital markets newsletter, informed its Twitter followers over the weekend that uncertainty is everywhere following a strong January jobs report and a “revised” higher December CPI.

Myles G, a well-known analyst and trader, emphasized the implications for cryptocurrency in the event that CPI came in higher than anticipated, stating that this would “dump the market big.”

Regarding the connection between CPI and market volatility, fellow trader Satoshi Flipper made the observation that “almost every CPI reveal last six months has been an instant dump, then an immediate recovery after traders digested the data.”

 

7 Important Things to Consider Before Trading Crypto


  • First-ever weekly “death cross” sparks concern

This month, opinions about the significance of Bitcoin are divided between two “crosses” in a curious situation. A “death cross” on the weekly chart is joining a “golden cross” on the daily timeframe.

The latter is the first of its kind for BTC/USD, but death crosses on other timeframes frequently come before substantial price declines. It remains to be seen whether the daily golden cross will follow past patterns and help the market, but in the meantime, a brand-new cross is taking place.

Although the event actually took place in the middle of December 2022, the one-year EMA has continued to fall below the three-year and two-year EMAs ever since.

He wrote, “This chart suggests that this time is different” despite the fact that “many Bitcoin investors have noted that BTC typically bottoms roughly 400 days after the bull market peak.”


  • Whales stay engaged

Whales may already have spoken about their interest in Bitcoin at the current price.

As BTC/USD dropped to $21,600 around the weekly close, research firm Santiment noted in data released on February 13 that whales had increased transaction activity.

It was summarized as follows: “Whale addresses responded by transacting at their highest rate in three months” after “Bitcoin dipped down to $21.6k on Sunday.”

On February 12, a snapshot of Binance’s order book activity revealed the presence of a significant whale entity and a brand-new sell wall at just over $22,000 into the weekly close.

Material Indicators, an on-chain analytics resource, noted that the data “shows new ask liquidity coincides with resistance at the 21-Day Moving Average and the.618 Fib.”

It said, referring to the occurrence on the weekly chart mentioned earlier, “Regardless of how high BTC bulls can push before the W close/open, expecting the Death Cross to have an adverse impact on short term upward momentum.”

 

  • Hodlers bounce back to health

According to the data, the average hodler has not made a profit from the whales’ actions. Long-term holders (LTHs), as reported by the on-chain analytics company Glassnode, have primarily been acquiring new positions over the past month.

On February 13, its Hodler Net Position Change metric reached three-month highs, indicating a return to hodling behavior that had been absent since the FTX catastrophe.

Also, things are getting better for LTHs who want to cash out some of their coins. In the previous issue of Glassnode’s weekly newsletter, “The Week On-Chain,” profitability was described as “recovering” in 2023.

It made reference to the Spent Output Profit Ratio (SOPR) metric, which measures the proportion of coins in transactions that are profitable.

According to the article, “Assessing the Long-Term Holder cohort, we can observe a persistent regime of sustained losses since the LUNA collapse.”

 

Copyrights © 2021 ZareTech.