Bitcoin (BTC) fell in the last week of February but is showing signs of strength as a key support level remains. Meanwhile, other coins like the Shiba Inu (SHIB) are also benefiting from this rise. So what will happen this week? cryptocoin.com We are presenting the important developments this week…
Bitcoin, SHIB and altcoins rally earlier this week
After a few tense days in both the macro and crypto markets, BTC/USD is below $40,000 but there are already signs that what started the week in the right direction could be a reversal. Concerns about inflation, US monetary policy, and geopolitical tensions are all at play, and with them comes the bearish potential for stocks. Other clues from the US Federal Reserve will be what investors watch for in the short term. The first significant interest rate hike is expected to be announced in March.
According to experts, in terms of interest rate hikes, there is a risk of recession in the very early period. However, the situation in Russia and its alleged plans for Ukraine further worry stocks. Commodities such as oil, by contrast, profit directly from the fear of war. Overall, however, while the short-term outlook is one of major uncertainty, optimism remains for risk assets like both crypto and traditional stocks through the end of 2022.
“Global equities lost another $1.3 trillion in mkt cap this week due to increased Russia/Ukraine risk and the potential for sustained rate hikes this year by the Fed,” market commentator Holger Zschaepitz said on Sunday. This is thought to cause a pause in the US.
BTC price targets CME futures gap
This month has been tough for the average Bitcoin trader. February only had two weeks of easy gains, with the macro effects ending the party last week. Since then, BTC/USD has lost the $40,000 support and has threatened a complete retracement of this month’s newly gained ground. In the event, however, $38,000, which had previously been highlighted as essential for the bulls, remained intact.
The weekly close was accompanied by a new RSI breakout on the four-hour chart, despite being the lowest in several weeks; this is a classic signal before short-term price jumps. Weekends on BTC/USD tend to be overlooked by seasoned traders due to the lack of volume exacerbating any movement. Therefore, a drop to $38,000 might be something of an exaggeration of market sentiment.
Moreover, a recovery has clear targets – $40,000 as a support/resistance exchange, but Friday’s CME futures closing price is $39,860, which is above Saturday’s drop. Bitcoin has a habit of closing these “gaps” in its CME chart, often within days or even hours when the new week trading starts.
Who buys when you sell?
Amid suspicions that some are opting to sell their BTC after months of negativity, data shows major players smelling a bargain. Some of the biggest Bitcoin wallets in the market have been accumulating cryptocurrencies and have been doing so throughout 2022 and even before. There are many instances where on-chain tracking resource BitInfoCharts specifically shows a wallet trending “only up”.
On Monday alone, he saw his balance increase by 150 BTC, and he is not alone – others are collecting coins during the local low this weekend. However, small-volume holders are not necessarily weak hands. The latest figures from on-chain analytics firm Glassnode show the number of wallets holding at least 0.01 BTC ($393) currently stands at an all-time high of 9.4 million.
Have lows been seen?
Those looking for signs that $38,000 is the local floor need not look far. Thanks to on-chain data analysis, it can now be seen that long-term Bitcoin investors repeated the behavior over the weekend accompanying the July 2021 and September 2021 BTC price dips. According to the dataset this time from CryptoQuant, a significant number of “legacy” cryptocurrencies were in motion over the weekend, thus “destroying” the largest number of days of inactivity below $30,000 since July 2021.
The phenomenon was noted by CryptoQuant contributor IT Tech, who also highlighted another ten chain metrics signaling a price bearish move. Reacting to the popular Twitter account PlanC, he suggested that the two could serve as a leading indicator for Bitcoin’s progress.
“Extreme fear” returns in Bitcoin, SHIB and cryptocurrencies
With all the influencing factors, it’s not surprising that crypto market participants don’t quite know how to feel about the outlook. The popular sentiment indicator Crypto Fear & Greed Index, which tries to gauge the market sentiment, agrees. The overall sentiment, bouncing below $40,000, is attempting to return to the “extreme fear” zone. As of Monday, the index is at 25/100. Fear and Greed went much deeper this year and there was a definite comeback in January as it neared its historic lows of 9/100.
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