Crypto Jebb takes the stage once again, bringing insights about Bitcoin’s latest movements, to the table. The CoinSpeech team has collected the most important takeaways from his recent appearance. You can find Crypto Jebb’s new video below.
Bitcoin’s Sudden Crash
The Bitcoin market has experienced a significant drop, with prices plummeting from around $72,000 to $68,500 in just six hours last week. This dramatic $3600 crash has “stoked fear in the market,” causing a further drop over the next 24 hours amounting to $4100. Altogether, Bitcoin has faced a total correction of $585 over the last 4 and a half days.
Factors Fueling the Crash
- United States CPI Data and Interest Rates: Concerns over the imminent CPI data release and the Federal Open Market Committee (FOMC) meeting about interest rates have created uncertainty. As Jebb explained, “fear over the United States CPI data coming out tomorrow and the fact that the interest rates are going to stay the same and they may even increase over the next few meetings” are contributing factors.
- Market Behavior and Consolidation: The cyclical nature of bull markets means that massive upswings are often followed by hefty corrections. Jebb noted that Bitcoin has rallied almost $50,000 in less than six months, increasing by 200%. A rally of this magnitude requires a period of consolidation. “A massive rally like that requires massive consolidation,” Jebb remarked.
Technical Indicators and Future Predictions
Despite the decline, Jebb highlighted two critical points to consider for Bitcoin’s future trajectory:
- Potential for Further Decline: Bitcoin has dropped below a major upward trending support level, suggesting a potential further decline. Jebb believes it “will probably drop lower” with $64,000 as the next critical support level.
- Inverse Head and Shoulders Pattern: Should Bitcoin drop to $64,000, it might form a significant inverse Head and Shoulders pattern, pointing towards a future price target of $90,000. Jebb elaborated, “Our price target would be drawn as follows: if we extrapolate that price target, that gives Bitcoin a price target of $90,000.”
Market Trends and Investor Behavior
Interestingly, while some fear the crash marks the end of the bull market, Jebb asserts, “people are taking profits,” and the market’s sideways action is a healthy consolidation phase. This shift means that weak hands are selling, and more steadfast investors are holding. As he put it, the “people that are holding Bitcoin now are investors that are speculating it’s going to go to 100 or 150 or 200.” This consolidation could plant the seeds for another significant uptrend, potentially pushing Bitcoin above $100,000 this year.
External Economic Factors
The broader economic landscape, including the U.S. stock market and monetary policy, also plays a crucial role. Tomorrow’s FOMC meeting and CPI data release will be pivotal events. Jebb explained that this confluence is significant as “the first time in years that we’re seeing the CPI data and the FOMC decision come out on the same day.” Whether the market will “sell the rumor and buy the news” or vice versa remains to be seen.