Bitcoin showed a flutter of activity, and the entire crypto market followed suit. Some analysts called the situation “ridiculous,” while others began discussing “reaching the bottom,” “the end of the crypto winter,” and the beginning of a new bull market. To get a more or less objective picture of what’s going on, CP Media gathered the opinions of industry experts and put them together in one article.
Note: The information appearing here is for informational purposes only and does not contain investment advice or recommendations. All financial management decisions should be made based on your own analysis and consultations with professionals.
Positive Signals Amid the Crypto Winter
Alexander Visotsky, Founder of Tonnus and Visotsky Inc, only partially supports the view that the crypto winter is coming to an end. According to the expert, the January growth of BTC signals the formation of a positive trend. The main reason behind this is a softening of the Fed’s rhetoric. “This situation positively affected the stock market and the cryptocurrency market,” Alexander believes.
At the same time, the crypto market “still has a lot of negativity” generated by FTX’s bankruptcy — this story “is clearly not over and causes concerns.” It keeps affecting other companies as well. “Nevertheless, the parallels with the stock market give hope for the beginning of a crypto spring,” the expert summarizes.
“The cryptocurrency market in February stands a good chance of continuing the recovery growth that began in January this year after the market’s collapse in 2022,” reports Dmitry Noskov, Expert at StormGain. “In February, BTC has every chance of reaching the $25,000 mark. The market’s recovery is promoted by speculation about the Fed’s eased monetary policy, the reps of which raised the key rate to 4.25-4.5% per annum at the December meeting,” Dmitry echoes the previously voiced thesis.
In his opinion, market participants expect that the regulator won’t raise the rate that much in the future amid declining inflation in the U.S. to 6.5% per annum — the lowest since the fall of 2021. “The Fed’s milder monetary policy makes dollar assets less attractive and encourages investors to transfer money to risky instruments such as cryptocurrencies,” Dmitry shares his view.
The expert thinks that the crisis phenomena in the global economy still persist, and this won’t let the crypto market unfold in full growth. “Considering that Bitcoin almost reached $70,000 at its historical highs, it’s still far from returning to these marks,” he believes.
A Current Bullish Impulse Is Likely to Continue
Anton Yanushkevich, Founder of Cryptemic Investments, expects BTC to probably correct into the $18,000-$21,000 area in February, followed by a continued current bullish momentum. He names capital inflows into crypto investment projects as prerequisites for further growth.
The increase in investor confidence, in turn, is due to the actions of the U.S. Federal Reserve, which helped slow the overall rise in inflation. “BTC’s increase positively affects the mining industry, given that during the challenging year of 2022, many miners actually had to capitulate. Today, more and more market players are coming back and turning on their equipment,” the expert notes.
“As for most altcoins, I believe we’ll see even more positive dynamics. Q1 2023 will stand for the bulls,” Anton shares an optimistic forecast.
Sergei Khitrov, Founder and Manager of Listing.Help, also states the strong bullish sentiment, thanks to which many digital assets have significantly increased in value. “However, an event occurred that could greatly influence the market’s movement in February. Crypto lender Genesis Capital, owned by DCG, filed for bankruptcy,” notes Sergei.
Listing.Help analysts believe that this event is expected to last at least one to two months and could affect the stability of other cryptocurrency companies. Besides, the movement of the cryptocurrency market in February may be largely influenced by the Fed’s decision on the key rate and further monetary policy, which will be announced on February 1.
“There hasn’t been any significant price correction movement of cryptocurrency assets for almost a month. We’ve only witnessed a rise since the beginning of the year. Therefore, we should probably see a local price decrease after some time,” the expert predicts.
BTC Technical Analysis for February
In terms of technical analysis, the situation was commented on in detail by Denis Trapezenko, Trader and Analyst at Vekus Mining Development:
“On the daily chart of BTC posted below, you can observe an impulse exit of the asset’s price from the trading range. This pricing completely filled the area of the daily imbalance (FF FVG 1D).
Equal highs (EQH) were formed at $21,480. There’s a bearish order block zone (OB 1D) around $21,840-$22,800, which acts as a strong resistance area for future growth.
There’s a large liquidity pool that has gathered below the current values in the form of sell stop liquidity and a weekly imbalance zone (FVG 1W), which the price will try to fill. RSI is strongly overheated, indicating the need to correct the current growth.
Based on the current pricing, it’s expected to update EQH ($21,480) with further high manipulation in the area of bearish order block OB 1D ($21,840-$22,800). If a reversal formation is established, we could see the start of a downtrend into the weekly ineffective pricing zone of FVG 1W ($17,177-$20,611).”
