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Bitcoin is once again in the uncertainty zone around $70,000. Behind this apparent stability, markets are watching a key factor: US monetary policy. The latest economic data released in the United States cooled expectations of a quick rate cut by the Federal Reserve. The probability of release already in March has almost evaporated. In this context, the crypto market is entering a waiting phase. Between macroeconomic signals and key technical levels, analysts are now trying to predict Bitcoin’s next direction
In short
- Bitcoin is hovering around $70,000 in a market marked by a wait-and-see attitude among investors amid macroeconomic uncertainties.
- The latest US economic data, particularly jobless claims and inflation, confirm that markets remain fragile.
- The likelihood of a Federal Reserve rate cut in March will fall below 1%, reducing optimism about risk assets such as cryptocurrencies.
- This situation keeps Bitcoin in a consolidation zone where the market lacks a catalyst to start a new trend.
Bitcoin stabilizes around $70,000 after latest economic data
Bitcoin is hovering around the $70,000 mark in a wait-and-see phase as markets digest several US economic indicators and the strategy just signed its biggest STRC day yet. The published data did not provoke a significant market reaction, but confirmed the still uncertain macroeconomic environment.
Here are the key elements that investors observed:
- Weekly initial jobless claims in the United States reached 213,000 in the week ended March 7, a level in line with market expectations;
- Markets also reacted to the recent release of the Consumer Price Index (CPI), also roughly in line with analysts’ forecasts;
- According to CME Group’s FedWatch tool, the probability of a rate cut at the March 18 Federal Reserve meeting has fallen below 1%.
These macroeconomic elements contributed to maintaining some caution in the financial markets. The absence of the prospect of immediate monetary policy easing reduces risk appetite, which partly explains bitcoin’s stabilization in a relatively narrow price range. Investors are now waiting for clearer signals from the Federal Reserve before anticipating a new directional movement in the cryptocurrency market.
Traders are watching key technical levels in Bitcoin
In light of this macroeconomic uncertainty, traders’ attention is turning to the technical levels currently framing the market. Several analysts believe that Bitcoin is moving in a well-defined consolidation zone that is likely to last for some time.
Trader Daan Crypto Trades summarizes this situation as follows: “anything between these levels is likely to trap you in erratic moves… Consolidation zones like this may very well take a few more weeks to resolve”. So, according to him, the current phase could be prolonged before a clear movement emerges.
Certain levels are particularly watched by investors. Analysts particularly mention resistance around $72,000, while the $62,000 area acts as a major support that is likely to attract market liquidity.
Between these two boundaries, Bitcoin hovers in an equilibrium zone where buyers and sellers appear to be momentarily neutralized. Another important technical landmark is identified around $68,000, which corresponds to a key volume point in the current market structure.
This equilibrium phase prompts debates about the dynamics of the current cycle. Some analysts remain cautious. Trader Rekt Capital believes so “Bitcoin will soon be halfway through its bear market”suggesting that the market could still be developing within a longer corrective phase than expected.
According to his analysis, approximately 75% of the bear market correction has already taken place. If this figure is confirmed, the current consolidation could represent a transition ahead of a new phase of volatility, either upwards or downwards, influenced by macroeconomic conditions and the development of investor sentiment.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed myself to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.
DISCLAIMER OF LIABILITY
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Before making any investment decision, do your own research.
