Bitcoin (BTC) is rapidly approaching a critical juncture in its price movement, with analysts closely watching an upcoming economic report that could significantly influence its trajectory over the next few months. Benjamin Cowen, a respected analyst with over 860,000 YouTube subscribers, has weighed in on what might drive Bitcoin’s next major move.
According to Cowen, Bitcoin is nearing a “decision time” as the market anticipates the release of the U.S. non-farm payrolls (NFP) report on February 7th. This key economic indicator, which tracks the number of jobs added or lost in the U.S. (excluding those in agriculture), will provide insight into the health of the country’s labor market and could have far-reaching consequences for Bitcoin’s price action.
The NFP report is a highly anticipated release, as it often influences investor sentiment regarding the strength of the U.S. economy. Cowen suggests that if the unemployment rate remains stable around 4.1% to 4.2%, Bitcoin could be primed for a rally.
“If the unemployment rate comes in fine… 4.1%, 4.2%, then my guess is that it’s more likely than not that Bitcoin would make another move up,” Cowen said in a recent video to his audience.
The analyst further explains that if the labor market remains solid, Bitcoin could see a continuation of its bullish trend, potentially pushing the price into a higher range.
Based on historical patterns and the current market setup, Cowen speculates that Bitcoin could follow a similar trajectory to what it experienced last year, which could result in a substantial upward move. He suggests that if Bitcoin mirrors its performance from the previous cycle, it could aim for a price range between $120,000 and $150,000.
“Bitcoin’s done the same exact thing it did last year. The question is, can it just simply follow through and get that next leg higher?” Cowen said. He remains optimistic about Bitcoin’s potential, especially if the upcoming labor market data supports the ongoing recovery.
While Cowen sees the possibility of Bitcoin continuing its ascent, he also mentions a potential risk of the market approaching a cycle top in the near future. Referring to the previous bull cycle, he reminds viewers that the peak occurred in April 2021. If Bitcoin experiences another surge in February or March, it could bring the cryptocurrency close to a market cycle top, signaling the end of the current bullish phase.
“There’s always a chance that if you do get another rally in say February or March, that it could lead into a major market cycle top depending on how aggressive it is,” Cowen noted. As Bitcoin continues its upward momentum, market participants will be watching for signs that could signal a shift in the overall market trend.
As of now, Bitcoin is trading at around $102,491, having shown resilience in the face of recent market fluctuations. Despite some recent pullbacks, Bitcoin has managed to hold above key support levels, and with bullish sentiment continuing to drive the market, many are hopeful that the cryptocurrency could soon test new highs.
In the coming days, all eyes will be on the February 7th NFP report and how the market reacts to the data. If the unemployment rate remains steady and the labor market shows positive signs, Bitcoin could be poised for a breakout, potentially heading toward the price targets suggested by Cowen.
Bitcoin’s price direction over the coming months may hinge on the upcoming U.S. economic data, particularly the non-farm payrolls report. If the unemployment rate remains stable, Bitcoin could see a continuation of its bullish rally, with analysts predicting that prices could rise to the $120,000 to $150,000 range. However, there is also the possibility that the current rally could lead to a market cycle top, and investors will need to stay vigilant in the coming months.
As Bitcoin navigates through this “decision time,” traders and investors alike will be watching the February 7th report closely, hoping for clarity on the next phase of the cryptocurrency’s price journey.
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