Bitcoin Market Analysis: BTC Re-emerge Above $41K Amid Favorable Macroeconomic Data
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
Free Crypto Signals Channel
Free Telegram Channel
While traders try to make sense of the sudden momentum switch in November that sent BTC from the $69K top to its $33K bottom in January, a wide array of factors from macroeconomic pointers to on-chain metrics practically control the primary cryptocurrency.
On the macroeconomic factors, many investors failed to take account of the macroeconomic factors at play during the November rally, which was why many got caught off guard. One of the most significant of such factors was the breakout of the Omicron Coronavirus variant. Another was the hawkish stance adopted by the US Fed to tackle rising inflation in the US.
Meanwhile, the US January unemployment data came in worse-than-expected on February 4, which contributed heavily to Bitcoin’s resurfacing above the $41K level. A poor unemployment rate indicates that the US Federal Reserve could cut down on its hawkish policy as it signaled that inflation might not be a big issue at the moment.
Finally, the worsening tensions from the Russia Ukraine standoff remains a significant source of concern for investors around the globe.
Key Bitcoin Levels to Watch — February 6
BTC shattered several ceilings on Friday following an 11.5% surge to the $42K two-week top. This bullish breakout comes after successfully tracking my mini bullish trendline since January 22.
The benchmark cryptocurrency has now escaped the $41K – $31K pivot zone and needs to sustain its footing above the $41K support over the coming days to lock in the upswing and continue to the $45K barrier or above the original bull trendline. That said, I look forward to seeing how BTC would perform in the coming days amid a healthy return of trading volume.
That said, BTC needs to reestablish a footing above the $37.5K barrier soon or risk extending its bearish position.
Meanwhile, my resistance levels are at $42,000, $43,000, and $44,000, and my key support levels are at $41,000, $40,000, and $39,000.
Total Market Capitalization: $1.90 trillion
Bitcoin Market Capitalization: $789.1 billion
Bitcoin Dominance: 41.5%
Market Rank: #1
