Crypto Analysis: Bitcoin Reaches USD 64 Thousand, But There is Potential for Another Drop

On the other hand, there is sentiment from the high debt of the United States, which has given rise to sentiment regarding the possibility of “financial decoupling,” a phenomenon that has the potential to separate the crypto market from traditional financial markets. However, there are also those who argue that this phenomenon is more the result of the extraordinary FOMO (Fear of Missing Out) in the current market.

On the technical side, the Relative Strength Index (RSI) currently stands at 83, indicating the Bitcoin market may have entered into overbought territory. This indicates the potential for further price correction or at least consolidation in the near future.

“While traders and investors are waiting for further developments, the crypto market continues to attract global attention with its volatility and high growth potential. This condition makes the movement of Bitcoin and other crypto assets the main focus in the future,” he explained.

This week, all attention is focused on the testimony of the Chair of the Fed, Jerome Powell, before Congress on March 6-7 2024. This testimony has the potential to influence market sentiment amidst increasing concerns about inflation and the potential for interest rate adjustments, Powell's statement has a significant impact on investors and analyst.

Additionally, several other Fed officials will speak providing insight into the Fed's current policy stance on interest rates. A number of economic indicators, including ADP employment data, US job vacancies, US productivity and the US unemployment rate, will be released this week. These indicators help crypto market players gauge potential Fed moves at upcoming meetings.