Bitcoin evolves amid uncertainty due to economic fluctuations and contradictory signals in the financial markets. This week, 5 factors could significantly impact its course.
Bitcoin and its Key Support at $90,000
Bitcoin remains in a tight range following the Bybit hack, slowing its bullish momentum. Traders are watching liquidity levels and anticipating a battle between buyers and sellers. Some see bullish potential toward $94,700, while others expect a return toward $90,000 before a possible recovery.
US Inflation and the Risk of Stagflation
The market awaits the publication of the PCE index on February 28, the main inflation indicator for the Federal Reserve. Despite signs of economic slowdown, history shows that stagflation does not necessarily imply a decline in stock markets. The S&P 500 has recorded gains in 75% of the years marked by stagflation since 1930.
Gold's Rise and Bitcoin's Low Volatility
Gold continues to break historical records, unlike cryptocurrencies. Interestingly, gold and the dollar are rising simultaneously, a rare phenomenon. Some analysts believe that Bitcoin often follows gold with a lag of three to six months. The low volatility of Bitcoin could also signal a significant market move coming soon.
Crypto investors should be prepared for a period of high uncertainty. Bitcoin may test the $90,000 support, influenced by U.S. inflation, gold's rise, and compressed volatility signaling a sharp movement. It is crucial to monitor macroeconomic and technical indicators, avoid impulsive decisions, and be ready to seize opportunities or limit losses.
