Bitcoin Price Prediction after Reversal
Bitcoin is looking bearish once more after losing much of its recent gains as the PPI report releases for January.
Quick overview
- Bitcoin (BTC) fell 2.46% to around $66K, dampening hopes for a bull rally.
- The token's recent gains were overshadowed by inflation fears ahead of the Producer Price Index report.
- Bitcoin has experienced two months of losses, marking a historical low and a substantial losing streak.
- Analysts suggest that March could bring potential recovery, as it has historically been a better month for Bitcoin.
Bitcoin (BTC) fell 2.46% over the last day, holding onto minimal gains from earlier in the week and stamping out hopes of a bull rally as it settled around $66K.
Now at $66,214 (BTC/USD), Bitcoin is having trouble maintaining its recent foothold and is likely to slip further as investors are once again let down. The token fell ahead of the Producer Price Index (PPI) report schedule for Friday and could be hurt by inflation fears. Analysts expect the January PPI report to show a decrease of 0.3%.
BTC/USDEarlier in the week, Bitcoin rose from $62K to $66K, gaining 6.4% in just over a day. That was its best upward swing in weeks, and investor hopes were high that this would be the move that helped get Bitcoin back on solid ground. Positive ETF inflows for Thursday also helped the coin along, marking the first item there was positive movement there for over a month.
Bitcoin Headed for Disaster
Friday’s setback could be a minor one, but in all likelihood, the coin will trend down further from here. Investors had their hopes raised and then dashed in short order, and sentiment will likely remain sour on the coin for a while longer.
Now Bitcoin is recorded with two months of losses at the beginning of the year. This is a historical low for the coin and one that it will have a hard time recovering from. As it stands, Bitcoin is likely to close off February with losses in the double digits. The coin has ended each month since October with losses, and it will likely do so again this month. That is a substantial losing streak that has not been seen in years.
Bitcoin did recover from that five-month consecutive loss record back in 2018, so it can possibly do so again, but investors should be aware that the coin is tremendously bearish and that every gain is an opportunity for coin holders to sell quickly and minimize their losses. Whales like Strategy (MSTR) are helping to keep the coin afloat and are attempting to drum up support for a rally, but they are working against a much larger market that has essentially shrugged its shoulders at Bitcoin and become tired of waiting for it to recover.
March could be a good month for Bitcoin, though. In past years, this is the month where things start to look better, and in some years, the coin has jumped 12% at this time of year. Prevailing sentiment among analysts is that Bitcoin and the crypto market have been down for long enough and now the bottom has essentially been reached. From there, the value can only go up, but investors may have to wait a few weeks to see Bitcoin actually hold onto its gains.
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