Bitcoin Price Faces Further Decline Amidst Technical Correction

Bitcoin’s price is set to extend its decline into a new week, burdened by “aggravating macro factors” and a technical correction. The cryptocurrency is down 25% from its January 20 all-time high of $108,786, as forward-facing inflation indicators incentivized a risk-off mood among investors.

The U.S. Core Personal Consumption Expenditures price index data matched analyst expectations, dropping to 2.6% from 2.9% year over year. However, Bitcoin only recorded a modest uptick, climbing to $81,800. The most valuable cryptocurrency by market cap previously fell as low as $78,400, losing over 6% in 24 hours and hitting a three-month low.

Technical Correction and Aggravating Factors

Analysts at B2BINPAY noted that the correction has mostly been technical, amplified by aggravating factors such as Trump’s tariffs and sovereign trade wars. “It’s the first tangible correction since reaching its all-time high less than six weeks ago,” they said.

“The correction has mostly been technical, amplified by aggravating factors.”

Further Decline Possible for Bitcoin

Consensus among Bitcoin observers warned of more volatility ahead. B2BINPAY’s team echoed the sentiment, citing support and resistance bands from Bitcoin technical analysis. If the 3M SMA support at $71,880 is not bounced back toward $80,000, the outlook would become less favorable, with a possibility of further decline.

Support and Accumulation

Standard Chartered shared a similar outlook, predicting that Bitcoin may retest $69,000 by early March. However, 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 Bitcoin in that range.

Tips for Investors

  • Monitor Bitcoin’s price movement and technical analysis for potential buying opportunities.
  • Consider diversifying your portfolio to minimize risk.
  • Stay informed about market trends and news to make informed investment decisions.

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