Cryptocurrency market February 28 CHK: Bitcoin strives to reclaim the 24,000 region, financial markets flourish

Investors are still optimistic about Bitcoin’s ability to continue its upward momentum towards $25,000.

Cryptocurrency Market

Market data shows that Bitcoin price has recovered along with the US stock market. The largest cryptocurrency by market cap saw a low of $22,722 over the weekend before the weekly candle closed above $23,500.

With US stocks recovering strength in the new week, hopes are high that Bitcoin can continue its upward trajectory into the last days of February.

Michaël van de Poppe, founder and CEO of trading firm Eight, said: “The rejection at the critical $23,800 indicates that we will have another test at the support area. If this happens and then the price bounces back, the market is likely to test $25,000 as the next target and longs will be triggered.”

Trader Tony has a similar view, but takes a more cautious view when it comes to the overall long-term uptrend.

“I will buy if BTC regains $23,750 and sustain above it, and will consider selling if the market fails to sustain above $22,900.”

Decentrader also argues that stronger signals are needed before going long on BTC.

“People continued to crave Bitcoin as it fell and now that the Long/Short ratio is still very high, at 1.8, it needs to fall much more before a real rally can take place. “.

In a new edition of the Weekly Roundup, trader DonAlt says a pivotal moment for the market is approaching as BTC prepares to close February.

According to DonAlt, if BTC closes above the monthly resistance at $23,291, this will signal BTC’s 2023 bull run is not over yet. The trader said he bought BTC around $23,000 as his bullish view on the asset remains intact. If Bitcoin once again drops below $23,000 and approaches the critical support at $22,500, traders should be extremely cautious.

“We had a bounce back to the best support in the area at around $23,000. If this level breaks, everyone should be cautious as the market will then move back to the old ranges below $22,500.”

Altcoins rally while traders are optimistic that BTC can still head towards the $25,000 region.

NEM (XEM), the P2P blockchain developed since 2015, is the project with the strongest growth of the day, when it bounced up to more than 40%, with a 24-hour trading volume at 321.42 million USD. marking an increase of more than 3,000% compared to the previous day. Stacks (STX) and ssv.network (SSV) are also two outstanding short-term projects when recording an increase of 22% and 12% respectively. Other projects such as Synthetix (SNX), SingularityNET (AGIX), dYdX (DYDX), Frax Share (FXS), ImmutableX (IMX), Lido DAO (LDO), Convex Finance (CVX)… also increased from 4-8% .

Ethereum (ETH) continues to struggle to hold above the $1,600 region and is currently trading around $1,632 with a slight 0.5% drop over the past 24 hours.

Macro factors

The US stock market rallied in trading on Monday (February 27), recouping some of its losses after having had its biggest weekly decline since the beginning of the year last week. Crude oil prices fell as investors continued to worry about the impact of interest rate prospects on energy demand.

At the close, the Dow Jones Industrial Average rose 72.17 points, or 0.22%, to 32,889.09 points. The S&P 500 index rose 0.31% to 3,982.24 points. The Nasdaq index rose 0.63% to 11,466.98.

Indices rallied as US Treasury yields turned lower. A sharp rise in bond yields on Friday triggered a sell-off on Wall Street, after statistics showed the Fed’s favorite inflation gauge rose more than expected.

“As the focus of investors’ attention is once again on the heat of inflation and its impact on the US Federal Reserve’s (Fed) monetary policy outlook, the issue of one-time interest rates again is driving the stock price action,” said Ross Mayfield, an analyst at consulting firm Baird, to CNBC.

“The rapid shift in expectations for the federal funds rate and the sharp increase in short-term US Treasury yields have fueled a risk-on sentiment in the equity markets. So, when yields softened today, stock prices rebounded,” Mayfield explained.

The early rally in US stocks looks to be fading on investors’ concerns that interest rates could stay higher for longer. Minutes of the most recent Fed meeting show that central bank officials are determined to raise interest rates until inflation is really under control.

“Just because the market recovered in January doesn’t mean the volatility is over. Investors are trying to get used to the idea of ​​higher interest rates for longer, and Friday’s hotter-than-expected inflation report essentially confirmed that,” said head of trading. of E-Trade, Chris Larkin, told CNBC.

This week, the market continues to pay attention to the US macroeconomic data – an important basis for adjusting expectations on monetary policy. This week’s important reports include the purchasing managers index (PMI) of the service and manufacturing sectors. In addition, investors are also interested in the financial statements of large retail companies such as Target, Costco, Lowe’s and Macy’s.

In the energy market, Brent crude oil futures in London fell $0.83 per barrel, or 1%, to $82.33 per barrel. WTI oil futures in New York fell $0.61/barrel, or 0.8%, to $75.71/barrel.

Oil prices continued to be under pressure from interest rate concerns and the uptrend of the dollar, while still being supported by the prospect of a recovery in the Chinese economy and the preparation of Russia to cut production. oil. In addition, in this session, oil prices were also supported by the news that Russia stopped exporting oil to Poland through a key pipeline.

In a sign of the Fed’s toughness, Fed governor Philip Jefferson said service inflation in the US remained “too high”. Meanwhile, oil supply in the US is abundant, as shown by the country’s crude oil inventories at the highest level since May 2021.

Polish oil refiner PKN Orlen said that Russia has stopped supplying crude oil to the country through the Druzhba pipeline. This development comes a day after Poland announced it had delivered the first Leopard tanks to Ukraine. Also on Monday, Russia’s state pipeline company Transneft announced that it had started pumping oil from Kazakhstan to Germany via the Druzhba pipeline through Poland, but stopped supplying Poland.

But in terms of European Union (EU) sanctions on Russian oil exports and international price ceilings on Russian oil, analysts say the impact on oil supply is generally negligible. big. “Russian oil production in recent months has remained higher than expected given the easing of sanctions,” Bank of America said in a report.