Bitcoin Falls into Regress Following Prolonged Consolidation

Updated:

Bitcoin (BTC) continues to struggle to make any meaningful headway above the $44,500 top, as the benchmark cryptocurrency stalled around this barrier for the past 24 hours.

Analysts opine that BTC has fallen into a sideways bias following new comments from the US Fed. The recently released FOMC minutes came with some surprises for the financial markets, ultimately prompting the primary cryptocurrency to adopt a range-bound momentum. While the market expects a rate hike in March, no firm confirmations came from the minutes. A statement from the minute read:

“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run.

In support of these goals, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent. With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate.”

The minutes also revealed that the Fed plans to cease all asset purchases in March, as proposed in its previous plans.

Moving on, with no market-moving data or news in the market on Thursday, the cryptocurrency market remained uninspired, further restricting Bitcoin within a range.

Commenting on the prevailing BTC price action, prominent trader and analyst Pentoshi took to Twitter to explain that: “My bias has changed a bit and now favor a squeeze towards 53k before mid-March.”

Key Bitcoin Levels to Watch — February 17

After a prolonged inability to break above the critical ascending trendline, BTC bears have taken the initiative and have driven prices lower, causing the flagship cryptocurrency to refresh its $42,000 low. While the $42,000 support has proven to be a tough level for bears to break, bulls cannot rest on their oars yet and need to defend this floor mark until the current bearish momentum loses steam.

BTCUSD – 4-Hour Chart on Gemini. Source: TradingView

With the absence of any market-moving data releases or news, BTC is left at the mercy of the prevailing market volatility and sentiment, painting a not-so-good picture for Bitcoin’s near-term price action.

Meanwhile, my resistance levels are at $43,400, $44,000, and $45,000, and my key support levels are at $42,000, $41,000, and $40,000.

Total Market Capitalization: $1.91 trillion

Bitcoin Market Capitalization: $797.5 billion

Bitcoin Dominance: 41.8%

Market Rank: #1

 

You can purchase crypto coins here: Buy Tokens

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.