Summary of the Article
- Bitcoin is currently trading under $23,000 and making lower lows compared to last month.
- The Federal Reserve will release macroeconomic data this week, which may lead to increased volatility in the markets.
- BTC price failed to beat the previous weekly close and is still below a key resistance level from mid-2022.
Bitcoin Retests $20K: 5 Things to Know This Week
Bitcoin looks like it is treading on thin ice as February fails to match the gains of last month.
Current Market Status
[Bitcoin] starts the second week of February in a newly bearish mood as multimonth highs fail to hold. In what may yet bring vindication to those predicting a major BTC price come down, BTC/USD is back under $23,000 and making lower lows on hourly timeframes. Feb. 6 trading may not yet be underway in Europe or the United States, but Asian markets are already falling and the U.S. dollar is gaining — potential further hurdles for Bitcoin bulls to overcome.
Important Macroeconomic Data
[M]arket attention [is] mainly focused on next week’s inflation check in the form of January’s Consumer Price Index (CPI).In the build-up to this event, the results of which are already hotly contested, volatility may gain a fresh foothold across risk assets.
Possible Retest of $20K
[T]here are concerns that Bitcoin is long overdue for a more significant retracement than those seen in recent weeks,…[and with macroeconomic data from Federal Reserve this week],the recipe is there for difficult but potentially lucrative trading conditions. em> p>.
< h3 >< strong >< em > Weekly Close Below Resistance Level em > strong > h 3 >
< p >< em > BTC / USD has managed to retain majority of its spectacular January gains,…However signs of a comedown are on cards as weekly close failed to beat previous one and represented rejection at key resistance level from mid- 2022 . „BTC is failing its retestof ~$23400 for time being,“ trader Rekt Capital summarized about topic Feb . 5 . An accompanying chart highlighted support & resistance zones in play . Technically ,retest still progress . …Add [macroeconimic data] concerns ,recipe there for difficult but potentially lucrative trading conditions . em > p>.
< h 3 >< strong >< em > Conclusion em > strong > h 3 >
< p >< em > Current market status indicate Bitcoin continues below $ 23 , 000 while also making lower lows hourly timeframes . Federal Reserve releasing macro economic data this week could further increase volatility across risk assets & there remain concerns that Bitcoin could be due more significant retracement than those seen recently . Weekly close this past weekend failed beat previous one & represented rejection at key resistance level from mid – 2022 , however technically retest still progress …..so it remains uncertain whether or not BTC will test $ 20 K soon …Only time will tell ! em > p>.