Bitcoin Breakout: Will Bitcoin Break The $45,000 Barrier Next Week?

Bitcoin (BTC) reached $45,000 for the first time in months this week. This follows a drop below $40,000 due to many of the unpleasant political and financial market news. The cryptocurrency is now priced at $42,000 as of February 13. Can the price of Bitcoin increase beyond $45,000 in the coming week?

Bitcoin was headed towards a $40,000 retest by the end of this week, but the cryptocurrency still has opportunity for growth.

On February 10, the United States reported data on consumer price rise, implying that the country’s inflation rate remains high.

We’ve witnessed the relationship between rising dollar inflation and rising crypto market values numerous times before. High inflationary uncertainties, along with the US Federal Reserve’s plans to terminate the asset purchase program shortly, may drive investors to seek for strategies to maintain assets and protect their prices from falling.

As a result, in the next two weeks, BTC may be able to break over the $46,000 barrier and establish a foothold above it. On the other side, if the stock market continues to fall rapidly, the price might fall below $40,000 or even lower.

The $45,000 mark is now the key resistance level for Bitcoin. Despite a huge number of orders in the $40,000 level, many “bears” have chosen a wait-and-see approach, since the cryptocurrency market remains tightly connected to stock indexes and is very susceptible to geopolitical dangers.

Given the significance of Bitcoin’s trading week outcomes, the digital asset market might expect more volatility by the end of the week.

A weekly candle that closes below $42,000 forms a bearish candlestick formation. This indicates that buyers will have to be on the defense for a few weeks in order to keep sellers from breaking through to the $40,000 level.

The Crypto Fear & Greed Index is equally volatile, rising from 44/100 to 54/100 in the middle of the week and then dropping down to 44/100 during the weekend.

Crypto analyst Benjamin Cowen projected that, under the best-case scenario, Bitcoin may resume growing in three weeks. A prognosis like this is based on past information. In reality, it takes three to six months for bitcoin to recover its value after falling below the bull market’s support level. Following that, the asset generally returns.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Patrick

Coincu News