"Buyers have recouped their losses." What will happen to bitcoin in the next week
Analyst Vladislav Antonov told about what will happen to the bitcoin exchange rate during the week from February 19 to 26 and whether to wait for the growth of the cryptocurrency price
On Sunday, February 19, bitcoin was trading at $24.6 thousand, and its price rose by more than 12% over the past seven days. The specialist analyzed the situation in the market and assessed the prospects of bitcoin movement in the next seven days.
"Buyers can safely raise the price."
BitRiver financial analyst
In the week of February 13 to 19, buyers recouped all losses and managed to renew the August high of $25,211. Let's look back at the events that influenced the crypto market and why bitcoin rose against the U.S. dollar.
The week began with a decline in cryptocurrencies. On Monday (February 13), during the European session, the pair BTC/USDt fell to $21,351. Selling began in response to the negative news about the ban on the issue of Binance USD (BUSD) stablecoin. The market stabilized amid a weaker U.S. dollar and a rise in the S&P 500 Index.
The investigation against the Binance exchange has been underway for a long time, so the ban on the issuance of BUSD was not a disaster for investors and traders. Changpeng Zhao, head of the cryptocurrency exchange, said he would continue to support Stablecoin for the foreseeable future. Crypto investors analyzed the news and by late afternoon, they recouped their losses.
From BUSD stablecoin, the focus shifted to the inflation report that the U.S. Department of Labor released on Tuesday (Feb. 14). Inflation slowed in January, but not as fast as many had expected. Fed officials, led by Chairman Jerome Powell, maintained their hawkish rhetoric and insisted on continuing the cycle of rate hikes. Inflation data did not change rate expectations, so bitcoin continued to rise to $22,319.
On Wednesday, February 15, bitcoin gained 9.57% to $24,324. The quotes' growth began with the Asian session after the futures on the S & P 500 and increased by the end of the day. The American statistics and alarming statements of the U.S. Treasury Secretary J. Yellen contributed to the rapid growth of quotations.
Strong retail sales signaled the relative stability of the U.S. economy. The growth of the index was subdued, but the bitcoin rally intensified. There was a sense that investors again believed in bitcoin as a protective asset against financial crashes.
Yellen once again warned of economic disaster if congressmen would not raise the debt ceiling. In addition, the U.S. dollar's share of payments and international reserves has declined. Investors continue to sell off bonds in anticipation of a default on nearby bonds. It's getting expensive to support debt.
On Thursday, February 16, the BTC/USDt pair fell 3.31% to $23,517.72 from a high of $25,250. On Friday (February 17), the decline accelerated to $23,339. In total, bitcoin fell 7.5% in a few hours.
The fixing of longs was triggered by the S&P 500 and the continuation of the rise of the dollar index after the release of unexpectedly strong data on manufacturing inflation. As the level of $25k acted as a technical resistance, the fixing was justified.
Statistical data confirms that the US economy is recovering and no recession is coming soon. But the discussion of the debt ceiling is difficult. It begs the question: why don't the U.S. rating agencies downgrade the U.S.? The states consider themselves the center of the earth and the country to which all must obey. It is always possible to change the rules of the game because a downgrade of the US sovereign credit rating would cause the dollar to weaken, which would affect the debt market. The United States can not allow that, so this topic is not raised in the media.
The BTC/USDt pair recovered to $25,021 and is trading at $24,560 according to the latest quotes. Buyers managed to level out the bearish sentiment and regain interest in the crypto market. The U.S. stock market will be closed on Monday (February 20) in observance of Presidents' Day.
Considering that the S&P 500 index rebounded before Friday's close and the dollar index fell, buyers can quietly raise prices until Tuesday without worrying about anything. They need to get a foothold above $25K and the road to the next target zone of $29-30K opens. If the American indices don't turn down, the weakening of bitcoin should not be considered.
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