Bitcoin bounces back after choppy weekend. Why this week could be a struggle.
Bitcoin
and other cryptocurrencies rose on Monday after a weekend of choppy trading, but digital assets remain below key levels heading into a week that could be light on catalysts.
The price of Bitcoin has risen 2% in the past 24 hours, settling around $27,400 after the biggest digital asset fell below $26,500 last Friday and gradually recovered over the weekend. Bitcoin remains well below the psychologically important $30,000 level, above which it has failed to consolidate any gains after crossing this mark last month for the first time since June 2022.
“Bitcoin proved interesting for sellers when it reached its 200-week average, passing near $26,000 last Friday. By defending this key average, the bulls have convinced the market of the sustainability of the long-term bullish trend,” said Alex Kuptsikevich, analyst at broker FxPro .” On Monday, investors switched to active buying and pushed the price to $27,500. Cautious buyers will likely want to see a break of $28,000 to $28,500 as confirmation of the break of last month’s downtrend.”
But crypto traders face a week that could be light on catalysts, which could make it difficult for a narrative to emerge in support of a continued rise in Bitcoin prices.
Cryptos continue to be sensitive to macroeconomic forces, and fluctuate along with
Dow Jones Industrial Average
and
S&P 500
in response to economic data—especially data that could shape the future of Federal Reserve monetary policy. The Fed’s campaign of inflation-fighting interest rate hikes over the past year has been a key headwind for digital assets, but Bitcoin’s 2023 rally has come amid growing expectations that the central bank will soon become more accommodating.
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Last week brought a wave of inflation data that moved crypto and stocks, but the calendar is much lighter in the coming days. On Monday, the Empire State manufacturing index is released before Tuesday provides US retail sales data – but otherwise the focus among investors remains on the looming US debt ceiling.
Beyond Bitcoin,
Ether
— the second-largest crypto session 1.5% to $1,830. Smaller cryptos or altcoins were also buoyant, with
Cardano
climbing 1% and
Polygon
up 2%. Memecoins showed more of the same, with
Dogecoin
and
Shiba Inu
increases by 1%.
Write to Jack Denton at [email protected]
