Bitcoin’s price has recently shown troubling signs reminiscent of previous bear markets, prompting caution among traders. As of now, Bitcoin is trading around $66,100, reflecting a 3% decline in the last 24 hours.
Historical data indicates that similar price patterns have preceded significant downturns in the past. In November 2018, a bearish flip in long-term averages led to a sharp drop in Bitcoin’s value, plummeting from around $6,000 to under $4,500 within a week. A comparable situation occurred in April 2022, where Bitcoin fell from $32,000 to $17,500 after displaying the same pattern.
Currently, some traders are bracing for a potential drop below the $60,000 mark. Despite the recent downturn, U.S.-listed spot Bitcoin exchange-traded funds (ETFs) have attracted over $1 billion in inflows within three days, indicating a strong demand. Iliya Kalchev, an analyst at Nexo Dispatch, noted that this influx suggests a trend of accumulation rather than speculation, with large wallets holding over 10,000 Bitcoin increasing their holdings during the recent price decline.
However, Kalchev cautioned that sustained ETF inflows are essential for Bitcoin to regain upward momentum. In the broader financial landscape, oil prices are being influenced by ongoing uncertainties related to U.S.-Iran relations, which could escalate over the weekend.
What to Watch
Looking ahead, several economic indicators are set to be released today. At 8:30 a.m. ET, the U.S. Producer Price Index (PPI) for January is expected to show a month-over-month increase of 0.3%, down from the previous 0.5%. The year-over-year PPI is anticipated to be 2.9%, slightly lower than the previous 3%.
In Canada, the GDP growth rate for the fourth quarter is also due for release, with analysts predicting an annualized growth rate of 2.6% and a quarter-over-quarter increase of 0.6%.
Token Events
In the crypto space, governance votes are underway, with the 1inch DAO considering the allocation of 2,000,000 USDC to the Aave V3 market on Ethereum. Voting will conclude on March 1. Additionally, several tokens are set to unlock portions of their circulating supply, including Grass (GRASS) and Jupiter (JUP), both on February 28.
Today also marks the listing of Fabric Protocol (ROBO) on major exchanges including Binance and KuCoin.
Market Movements
In recent trading, Bitcoin’s price has remained relatively stable compared to its closing value of $67,423.09 from Thursday, with a slight decrease of 0.95%. Ethereum has also seen a decline of 0.89%, trading at $2,012.51.
Across the board, the CoinDesk 20 Index has decreased by 2.49%. Other notable market movements include the DXY remaining unchanged at 97.74, while silver futures rose by 2.82% to $90.05.
Bitcoin Statistics
Bitcoin’s market dominance stands at 58.49%, with a hashrate averaging 1,055 EH/s. The CME Futures open interest for Bitcoin is recorded at 107,780 BTC.
Technical Analysis
Technical indicators show that Bitcoin’s long-term moving averages have crossed into bearish territory, echoing patterns observed in 2018 and 2022. This trend raises concerns about a potential continuation of the current bearish phase.
As traders remain vigilant, the market’s reaction to upcoming economic data and geopolitical developments will be critical in shaping the next steps for Bitcoin and the broader cryptocurrency landscape.
Bitcoin's recent price patterns are causing concern among traders, drawing parallels to previous market downturns. Despite significant ETF inflows, analysts caution that sustained demand is necessary for recovery as the market braces for key economic data.