Outside Source
Bitcoin’s second-worst February on record is set to extend into a new week, with price burdened by “aggravating macro factors” and a technical correction.
Bitcoin (BTC) was down 25% from its Jan. 20 all-time high of $108,786 as forward-facing inflation indicators incentivized a risk-off mood among investors, and spot exchange-traded funds logged continuous outflows on Wall Street.
Although U.S. Core Personal Consumption Expenditures price index data matched analyst expectations—dropping to 2.6% from 2.9% year over year—BTC only recorded a modest uptick, climbing to $81,800.
Previously, the most valuable cryptocurrency by market cap fell as low as $78,400, losing over 6% in 24 hours and hitting a three-month low.
“It’s the first tangible correction since reaching its all-time high less than six weeks ago”, analysts at B2BINPAY told crypto.news via email. “The correction has mostly been technical, amplified by aggravating factors,” the analysts added, referring to Trump’s tariffs and sovereign trade wars.
Further decline possible for Bitcoin
Consensus among BTC observers warned of more volatility ahead. B2BINPAY’s team echoed the sentiment, citing support and resistance bands from BTC technical analysis.
Speaking from the technical standpoint, if we approach the 3M SMA support at $71,880 and wouldn’t bounce back toward 80K’s, the outlook would become less favorable, as there is a possibility of further decline.
BNBINPAY analysts
Standard Chartered shared a similar outlook, predicting that BTC may retest $69,000 by early March. IntoTheBlock data showed massive accumulation between $60,000 and $72,000, potentially forming a defense from larger declines. Over six million addresses acquired 2.64 million BTC in that range.
This article first appeared at crypto.news
