The current price movement of Bitcoin (BTC) sends conflicting signals about the future of this cryptocurrency.
Analysts have focused on Bitcoin’s range-bound price movement, prompting some to wonder whether we have reached a market bottom or if BTC is decoupling from the equity markets. According to Jarvis Labs’ on-chain experts, Bitcoin’s next move will be determined by how well US stocks do. A drop in BTC’s price to the downside goal of $16,900 is possible shortly. Bitcoin has stayed put as investors wait for news on inflation.
Bitcoin Analysts Are Worried About The Price
Bitcoin’s price has had trouble staying over $19,000 this past week, costing investors 6.2% in value. Over the previous 30 days, the price of Bitcoin has fluctuated between $19,000 and $21,000.
Investors are proceeding with caution until we hear from the Federal Open Market Committee (FOMC), the group responsible for setting monetary policy at the US Federal Reserve, on Wednesday. The news may affect how investors feel about BTC and other cryptocurrencies in general.
The price of BTC showed no discernible pattern, according to analysts. Experts often classify BTC as illiquid due to the present level of the Supply Shock Ratio. Some significant BTC wallet holders’ actions suggest they have some apprehension about using BTC for commercial transactions. The stronger the BTC price surge, the higher the reading.
As soon as the gauge stops fluctuating for a while, BTC makes a dramatic comeback. Only the BTC meltdown in March 2020 stands in contrast to the general trend. High open interest in BTC futures and the fact that a significant proportion of the BTC supply is behaving similarly to what was seen in the past lead experts to conclude that this is a rubber band setup. BTC sites have liquidity of around $18,000, while bigger pools begin at $16,900. It is more probable that the BTC price will fall to the $16,900 mark.