Bitcoin starts a new week at a crucial point as analysts predict a potential short squeeze ahead. Here are five critical factors to consider:
- Bitcoin finished the week above an essential 200-week trend line, igniting optimism that it could reach $75,000.
- Liquidations remain high, and traders believe that long positions could soon dominate the market.
- Upcoming U.S. inflation data may influence market volatility later this week.
- On-chain data shows concerning trends, as the net unrealized profit and loss ratio is at a three-year peak.
- Certain loss-making aspects indicate that Bitcoin might be entering a new bearish phase.
Bitcoin Faces Uncertainty in 2024
Despite a seemingly stable weekly candle close recently, traders recognize the importance of the current price range. As of now, Bitcoin’s value is around $68,800, maintaining above a long-term trend line vital for its upward movement.
Trader CrypNuevo highlighted the significance of a price range that had held for seven months, suggesting that fluctuations could touch the lower price bounds soon, especially if Bitcoin doesn’t maintain the current levels.
High Liquidations Around $70,000
Although volatility has lessened since Bitcoin’s recovery from $59,000, market sensitivity remains heightened. Recent data indicates over $250 million in liquidations occurred within 24 hours, illustrating the market’s precarious position.
With ongoing reports from traders about targets impacting prices, further movements are expected as the week progresses.
Volatile Macroeconomic Week Ahead
Given the U.S. Presidents’ Day holiday, key economic data releases later in the week are poised to create market shifts. The PCE Index, deemed the Federal Reserve’s preferred inflation measure, will be particularly significant as the Fed’s monetary policy comes under scrutiny.
Market Takeaway: A close watch on volatility is recommended, alongside ongoing geopolitical tensions and economic fluctuations.
