Bitcoin, after a weekend of unusual volatility leading to significant losses, has started the new week in recovery mode. The price action of Bitcoin is struggling to reclaim all-time high levels after days of persistent selling pressure, but can the bulls turn the tide? Here are the important processes and analyst comments to pay attention to on the Bitcoin front.
What to Expect for Bitcoin?
A significant macroeconomic week continues to sustain unpredictable market conditions as both crypto and risk assets await cues from the US Federal Reserve. The fight against inflation is ongoing, and recent data shows that inflationary forces are not giving up without a fight.
With just one month left until Bitcoin’s next block subsidy halving, history might be repeating itself with a classic pullback before the halving. It was a brutal weekend for the bulls hoping for a break, placing Bitcoin at its lowest levels since March 6th.
The BTC/USD pair, which had risen to around $64,500, later showed a solid recovery, reaching nearly $69,000 before the weekly close without encountering new losses. At the time of writing this article, according to data from TradingView, the pair was trading around $68,000 and still had not broken through the region known as the all-time high of 2021.
Noteworthy Statements for Bitcoin
Analyzing the current situation, popular investor Skew has marked the 21-period exponential moving average (EMA) on the 4-hour chart as a line to be reclaimed in the next stage. Bitcoin’s 4-hour Relative Strength Index (RSI) data, currently at 48.2, also needs to rise above 50. Skew commented on the matter:
“We still need a strong close above the 4-hour EMA 21 average and an RSI above 50 with the reclaiming of $69,000 – $70,000. These are very important confirmations for moving higher, until then, stay a bit defensive.”
The selling pressure on Bitcoin was unusually high for a weekend without institutional transactions. A circulating theory links this trend to the unwinding of a position by a single hedge fund. The fund in question may have taken a long position in Bitcoin while simultaneously shorting shares of the tech company MicroStrategy (MSTR).
When this position was liquidated, the fund had no choice but to sell about $1 billion worth of Bitcoin to cover the losses. Investor Fred Krueger, in part of his statement made via X, referred to additional sell-offs by smaller Bitcoin holders, adding that there was also a sale of shrimp, crabs, and fish throughout the week.
Despite this setback, Bitcoin still managed to make its second-highest weekly close ever. The largest cryptocurrency by market cap finished the week just $600 down from its previous close, at just under $68,400. Popular analyst Jelle shared his thoughts on the matter:
“A new week with Bitcoin above the highest resistance level on the chart, don’t be shaken.”
