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- Bitcoin price breakout above $97,000 could trigger a rally toward $98,500 and possibly $100,000, while failure could push BTC down to support levels at $95,000.
- Federal Reserve speeches and inflation data are expected to influence financial markets this week.
The current week begins with the release of the Conference Board (CB) Consumer Confidence Index. The indicator captures public opinion about the economy, and it has an impact on market trends. A better-than-expected reading might lead investors to be more aggressive, which could be positive for Bitcoin (BTC). Alternatively, lower confidence might result in caution, which could see risk assets retreat. The last report had a reading of 109.5, while February’s estimate is at 105.7.
Housing Market Trends, Inflation & Federal Reserve Policy In Focus
Tuesday brings new information on the housing market via the January New Home Sales report. The data is a major economic health indicator, as a strong housing market usually means stability. At the same time, Nvidia’s earnings report should attract much attention. As the company is a leader in artificial intelligence and semiconductor markets, solid earnings would improve investor sentiment among tech stocks. A general market upturn could overflow into the crypto market, pushing new enthusiasm for Bitcoin.
The fourth-quarter Gross Domestic Product (GDP) report for the year 2024 is to be released on Wednesday. A strong GDP reading would support optimism regarding the economy, which may boost demand for high-risk assets such as BTC. But in the event of growth below forecasts, fears of a downturn in the economy might propel market volatility. The result of the report will determine trading behavior in traditional and online markets.
Investors will eagerly follow the Personal Consumption Expenditures (PCE) Price Index on Thursday, a measure highly valued by the Federal Reserve to gauge inflation. If persistent inflation continues to persist, the implication for impending interest rate shifts would be evident in market attitudes. Any confirmation of increasing inflation could create skepticism, affecting price direction in BTC.
During the week, several Federal Reserve officials will have opportunities to speak on monetary policy, economic conditions, and inflation. With 10 appearances planned, their words could shed light on the Fed’s position regarding interest rates. Any indication of future policy change could prompt financial market volatility, including in cryptocurrencies.
Bitcoin Price’s Struggle Near $100K Continues
Bitcoin price remains in a consolidation phase, hovering around $95,890 after a 1% drop over the past day. The primary resistance level sits at $97,000, aligning with the 50-day Exponential Moving Average (EMA). A breakout above this barrier could fuel a rally, potentially targeting $98,500 and, eventually, the critical $100,000 threshold, as mentioned earlier.
But if it fails to break resistance, it could slide lower, with Bitcoin possibly testing support at $95,000. Further losses could take the BTC price down to $93,500 or even $92,000 if selling pressure picks up. Traders are on guard, watching economic reports and Federal Reserve comments for clues that might determine Bitcoin price’s next direction.
