Bitcoin’s Bearish Signal: Is the Crypto Rollercoaster About to Take a Nosedive? 🎢

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Well, folks, it seems Bitcoin has decided to take a little detour into Bear Country for the first time since October. Traders are biting their nails, wondering if BTC will cling to its support like a cat to a tree or plummet into the abyss. 🐱‍👤

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Bitcoin faces uncertainty

Ah, Bitcoin (BTC), the digital currency that’s more temperamental than a toddler in a candy store. It’s currently wobbling on the edge of a financial cliff, trying to reclaim that elusive six-figure status while investors are sweating bullets over upcoming economic data that could send it spiraling downwards.

Remember January 20? Bitcoin hit a jaw-dropping $109,114, coinciding with Donald Trump’s inauguration. Since then, it’s taken a nosedive of about 11%, now trading at a mere $97,300 as of February 10. Talk about a rollercoaster ride! 🎢

And just when you thought it couldn’t get any crazier, Trump’s tariff chatter has thrown a wrench into the works. On January 9, he hinted at a 25% blanket tariff on steel and aluminum imports, along with “reciprocal tariffs” on every country that dares to cross him. Who knew tariffs could be so entertaining?

Trump 25% import tariff of Steel and Aluminum will impact these countries

— David Lee (@DavidLe76335983) February 9, 2025

We’re expecting a formal announcement as early as February 11 or 12, with steel tariffs possibly kicking in even sooner. It’s like waiting for the next season of your favorite show, but with more economic implications.

On February 1, the U.S. slapped 25% tariffs on imports from Canada and Mexico and 10% on Chinese goods, sending global financial markets — including crypto — into a tizzy. It’s like watching a game of Jenga, but with billions of dollars at stake.

While the market sentiment stabilized after a brief rollback of these tariffs, it’s still as fragile as a soap bubble in a room full of toddlers. And now, the MACD 12,26, a momentum indicator that sounds like a robot from a sci-fi movie, has turned negative for the first time since October 2024. Yikes!

The last time this happened, Bitcoin plummeted from $64,000 to $49,000 in a matter of months. So, will it regain its strength and bounce back toward six figures, or are we in for a deeper correction? Only time will tell, and it’s not known for its patience.

A big week for economic data

This week is shaping up to be a nail-biter as a slew of key economic data is about to drop. With inflation numbers, labor market updates, and Federal Reserve signals all set to make an appearance, investors are on high alert, like cats watching a laser pointer. 🐱

Each data point could shift market sentiment faster than you can say “cryptocurrency,” influencing rate expectations and dictating the next big move for risk assets, including our beloved Bitcoin.

CPI inflation report

Mark your calendars for 8:30 a.m. ET on Wednesday, February 12, when the Consumer Price Index report for January is released. This is the moment we’ve all been waiting for — the CPI, a key inflation gauge that measures the cost of living and is closely watched by investors like hawks eyeing their prey.

Analysts predict consumer prices increased by 2.9% year-over-year, the same rate as in December. Meanwhile, core CPI, which excludes the more volatile food and energy prices (because who needs to eat, right?), is expected to ease slightly to 3.1% from 3.2% in December.

On a month-to-month basis, the overall CPI is projected to dip to 0.3% in January, down from 0.4% in December. However, core CPI is believed to have risen to 0.3% from the previous 0.2%. It’s like a game of economic whack-a-mole!

If the actual figure falls below expectations, markets might start pricing in additional rate cuts from the U

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2025-02-10 17:29