February has been a roller coaster for cryptocurrency traders, with market volatility leading to high levels of price uncertainty. After a strong start to the month, bitcoin prices have since tumbled, leading to a current downtrend. However, with just over two weeks left in this short month, what else is in store for speculators?
Current state of the market
Bitcoin has been trading mostly higher this year, driven by lower levels of inflation, which in turn has led the Federal Reserve to raise rates at a slower pace.
Since starting the year trading at a high of $16,621, the world’s largest cryptocurrency by market cap has added as much as $8,000 to its value, in a four-week period.
However, last week’s rate hike, which was a 25 basis point move, was followed by a significant rise in Non-Farm Payrolls, which confounded the markets.
Payrolls came in at 517,000 versus expectations of 185,000, leading many to question the Fed’s view that we are in a disinflationary cycle.
With macro elements confusing investors, the crypto industry saw more bearish sentiment as the US Securities and Exchange Commission (SEC) cracked down on staking services, adding to the situation. already gloomy.
Following this, markets have mostly moved lower, with previous bulls consolidating gains from earlier in the month.
February outlook
At the time of writing this, BTC/USD is currently trading at $21,690.20, which is its lowest point since January 20.
Looking at the graph, BTC it has extended a break of a key price low at $22,500 and seems to be moving towards lower support at $21,200.
On top of this, the 10-day moving average (red) has firmly reversed course and is now approaching a bearish crossover with its 25-day counterpart (blue).
As a result of this shift lower, the 14-day Relative Strength Index now sits at a 1-month low at 45.60 and is now approaching the oversold region.
There is a strong possibility that BTC/USD will hit a floor at $21,200, however if this point holds, the bulls will likely use this as an opportunity to make another run towards the $25,000 mark.
Will the bulls reject a break below $21,200 this month? Let us know your thoughts in the comments.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
