bitcoin

The Bitcoin price outstanding comeback ended as the coin declined by three days, trading at $41,384, 8% beneath its highest this week.

Fed and NFP data

The BTC price drop began when the Federal Reserve chair began his congress testimony on Wednesday. He hinted that the bank would start hiking interest rates this month, which could be as high as 50 basis points.

His justification was that the hike was significant due to rising consumer prices. Data proved that US inflation surgest to its highest in over 40 years. The situation is likely to worsen due to the rise in oil and gas prices.

Historically, Bitcoin prices decline in a hawkish environment as investors prefer safe havens.

Friday’s forthcoming US job numbers are the next major catalyst for the Bitcoin price. Analysts foresee a rise in jobs in February due to the drop of Covid restrictions in most states.

Particularly, analysts polled by Reuters expect a 400k jobs increase in February after the 467k in January. The unemployment rate is expected to drop by 4%.

The BTC price action is similar to American equities. On Thursday, the Dow Jones, Nasdaq 100, and S&P 500 indices sharply dropped as investors kept worrying about Russia’s economy amid the current sanctions. Many western firms have announced that they will exit the country while the Russian ruble has ended.

Bitcoin price prediction

The daily chart indicates a double-top pattern of the BTC price, at around $45,290. It’s normally a bearish sign, which explains why it has had a downward trend for the past three days.

The price is also slightly above the 25-day, and 50-day moving averages and is slightly below the first support of the Andrews pitchfork tool. Moreover, it moved below the 61.8% Fibonacci retracement level.

Hence, the path of the least resistance for Bitcoin price is lower, with the next key level to watch is at $40,000.

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