Bitcoin Teetering Around $97,000: What Does Technical Analysis Say?

Cryptocurrency analyst Benjamin Cowen sees recent labor market data and inflation expectations potentially having significant implications for Bitcoin’s BTC/USD price trajectory in the near term.

What Happened: In a podcast on Feb. 9, Cowen highlighted the unexpected drop in the U.S. unemployment rate to 4% and a sharp increase in inflation expectations as key factors that could influence Bitcoin’s performance.

He notes that the unemployment rate coming in below 4.1% could “reinvigorate inflationary fears,” potentially leading to a bounce along the yield curve.

The analyst also draws attention to the significant jump in U.S. Michigan one-year inflation expectations, which rose from 3.3% to 4.3% in a single month.

Cowen speculates that this increase could be due to various factors, including potential policy changes, expectations of rate cuts, or the impact of tariffs.

Cowen points out that the 10-year Treasury yield is currently testing a key technical level, stating, “I do wonder if the 10-year yield is just simply going to bounce off of this 21 weekly EMA just like it did back over here at the beginning of December.”

He suggests that if the 10-year yield breaks back above 5%, it could create headwinds for Bitcoin, potentially causing it to “struggle for at least a few more weeks.”

Also Read: Bitcoin Struggling But ‘Perfect Storm’ Will Take It To $500,000, Ethereum To $20,000, Trader Predicts

What’s Next: Cowen describes last week as one of “indecision” for Bitcoin but believes the current week could set a clearer direction. He compares today’s market to last year’s Bitcoin rally, noting a key difference:

• In 2023, Bitcoin surged alongside a strong stock market.
• In 2024, stocks like Nvidia have been struggling, making this setup less favorable for BTC.

While Bitcoin has held up better than many other assets, Cowen urges traders to watch the 10-year yield closely, as its movement could determine BTC’s next major move.

Regarding Bitcoin’s immediate future, Cowen characterizes the last week as one of “indecision,” suggesting that a clearer direction may emerge in the current week.

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