- One interesting event that could affect the Bitcoin price this week is February’s Federal Open Market Committee (FOMC) meeting at the Fed.
- According to on-chain analytics firm Glassnode, Bitcoin miners are holding their BTCs.
In the past few days, Bitcoin (BTC) went past $25k for the first time since August, dragging most of the altcoins along. Shortly after, the asset made a marginal pullback to trade below that price point before bouncing back. Bitcoin is currently trading at $25,890. In the past week, the asset has surged by more than 14 percent, hitting a safety score of 82 percent and a bullish current sentiment. Interestingly, the price could be hugely affected by some key events scheduled to happen this week.
Most “greed” since Bitcoin’s all-time highs
Bitcoin is all set to break a key resistance level of $25k, and analysts believe that this could be an unsustainable move. Interestingly, research firm Santiment has disclosed that the crypto market sentiment becomes greedy whenever the asset reaches a multimonth high.
Perhaps a bit too much, as the positive comments on social platforms may have created a local top. Just as the negative commentary on Feb. 13th likely contributed to the bottom.
Crypto Fear & Greed Index also shows greed as the “overriding sentiment flavor across crypto this week.” The reading of 62/100 is currently the highest since November 2021.
Hash rate, difficulty in line for fresh record highs
The next automated readjustment is expected to increase by 10 percent. This is a big deal as it indicates the sentiment level of Bitcoin miners. The expected increase shows a considerable surge in competition for block subsidies. According to on-chain analytics firm Glassnode, Bitcoin miners are holding their BTCs. This reverses the trend of net sales from the middle of January. MiningPoolStats also published raw data showing that the Bitcoin network hash rate is preserving its upward trend. This remains 300 exahashes per second (EH/s).
Joe Burnett, head analyst at Blockware also commented:
The 14-day moving average of the total global hash rate now sits at ~ 290 EH/s. Bitcoin miners are scavenging the Earth for cheap, wasted, excess energy.
It is worth noting that a large enough hashrate has a bullish implication on the Bitcoin price.
All eyes on FOMC minutes and the U.S. dollar
One interesting event that could affect the Bitcoin price this week is February’s Federal Open Market Committee (FOMC) meeting at the Fed. This is very important as an interest rate hike was decided here. However, financial market research resource Capital Hungry believes that the minutes may not be plain sailing.
Feds sneak in hawkish revisions out of the spotlight (not an active FOMC) with the market already adjusted to CPI revisions and the Jan report. PCE data feeds into elevated inflation sentiment.
Also, the U.S. Dollar’s strength would be boosted when there is any return of inflationary tendencies.
RSI “bearish divergence” causes alarm
Venturefounder, a contributor to on-chain analytics platform CryptoQuant has observed that external factors could have an immediate bearish impact on the crypto market this week. According to Venturefounder, the Relative Strength Index (RSI) metric was increased with the Bitcoin price correction in 2021 before the asset hit $69,000.
Bitcoin bearish RSI divergence continues… Almost the exact opposite way of the May–July 2021 period. I think any macro weakness can have BTC snap back to $19-20k real quick.
Analyst: moving average “cloud” is there to be broken
It is reported that Bitcoin bulls are having problems, and this is becoming evident in the short time frames, thus, the 200-week moving average (WMA). It is reported that the 200WMA, the classic bear line has acted as a resistance level since 2022.
Caleb Franzen, senior market analyst at Cubic Analytics stated:
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If Bitcoin manages to break above the 200-week MA cloud, which is becoming increasingly likely, we’re going to see a lot more TradFi coverage of crypto again.
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