Bitcoin bulls disappear ahead of big central bank week

Bitcoin price lost over 2% during Monday’s European trading on the back of stronger Spanish inflation amid a seemingly volatile week that kicks off with surprise Spanish inflation data. Markets predicted a drop from 5.7% to 4.97%. Instead, inflation jumped to 5.8%.

The said reading confirms what central bankers have been announcing over the latest weeks and what markets have been ignoring. Bitcoin traders are on edge as this week might be the toughest for the first quarter of 2023.

Bitcoin received a breakout and rejection against $23,878.62 and later, retreated on Monday as the rally came under pressure by profit-taking. The most famous cryptocurrency is trading at $ 22747.00 at the time of writing. Some analysts do expect bitcoin to drop near $21,969 by the end of this week once all central bank events and the US job report have been fully digested.

Not only are the Fed, the ECB and the BoE expected to bring out their forecast and monetary policy, but also the US NFP report will be released on Friday. There could not be more variables available to provide a most desired catalyst.

This week’s events will make Bitcoin more difficult to trade and might force a lot of traders to close the week with a potential loss, depending on where Bitcoin is trading at the official closing bell on Friday evening.