Bitcoin (BTC) launches into US CPI week with new multimonth highs as traders dig in for volatility.
-
BTC price action is giving increasingly bullish signals, joined by a key cross on the weekly MACD indicator.
-
The weekly close fell just short of expectations, raising doubts over whether price discovery will return in the immediate future.
-
CPI and PPI headline the week’s US macro data drops, but markets are all about the US-China trade deal and its implications.
-
Bitcoin supply in loss drops below 2% in a rare test of hodlers’ staying power.
-
Despite the gains, crypto market sentiment remains cool amid a lack of mainstream interest.
Bitcoin MACD cross copies October 2024
Bitcoin managed to preserve its highest levels since January around the weekly close as bulls battle resistance below all-time highs.
Volatility was visible over the weekend thanks to BTC/USD staying sensitive to developments around US trade tariffs.
On the hourly chart, these manifested as snap moves up and down before a broad sideways trend continued, resulting in several “long wick” candles.
That pattern continued into the week’s first Wall Street open, with Bitcoin hitting new highs of $105,706 on Bitstamp, per data from Cointelegraph Markets Pro and TradingView.
“Price action was making it seem like something big was coming. Any tiny dip was getting scooped up instantly and price started to move ~1 hour prior to the announcement,” popular trader Daan Crypto Trades wrote about the tariffs phenomenon in part of a post on X.
“We’re seeing quite a lot of ‘aware’ price action precede big announcements lately. The insider/leaking is real and it’s used to trade our markets. Keep in mind, seeing this is such a big one including two major countries, it could be anyone anywhere.”
Fellow trader James Wynn continued by forecasting additional volatility to come.
“It’s about to get seriously volatile for $BTC. Sharp wicks down, sharp wicks up,” part of his own X post stated.
An accompanying chart showed exchange order book liquidity from monitoring resource CoinGlass. To the upside, $106,000 was the key area to break through on low timeframes.
Others pointed to a bullish cross on the moving average convergence/divergence (MACD) indicator, which on weekly timeframes provided a key upside impetus.
“Probably the biggest signal you can get at the moment,” popular trader Moustache summarized to X followers, noting that the last such cross was in October 2024.
As Cointelegraph reported, MACD had previously offered mixed signals, with daily performance giving traders pause for thought.
Bitcoin bulls narrowly miss key weekly target
Despite hitting its highest levels in three-and-a-half months after the weekly close, Bitcoin failed to flip a key support line that would secure a fresh breakout.
The weekly candle closed at around $104,100 — a stone’s throw from what analysis previously described as the ticket to price discovery.
Updating X followers on the topic, popular trader and analyst Rekt Capital confirmed a rejection at $104,500.
“Going forward, it’ll be worth watching for Bitcoin to form Lower Lows on the price action and Higher Lows on the RSI for a Bullish Divergence to develop,” he concluded.
Before the close, BTC/USD had given strong cues that a retest of all-time highs could be on the cards and even a venture beyond.
“Bitcoin is on the cusp of beginning Price Discovery Uptrend 2,” Rekt Capital stated at the time.
Price thus returned to a trading range only recently reclaimed during a week in which bulls enjoyed gains of 9.9%.
As Cointelegraph reported, BTC price targets already included $150,000 and higher during June.
CPI week dawns with uncertainty “everywhere”
Another crunch macroeconomic data week for risk-asset traders makes for a potentially volatile environment for Bitcoin and altcoins.
Two key inflation markers, the Consumer Price Index (CPI) and Producer Price Index (PPI) print for April, are due in the coming days.
At the same time, markets are on edge over US trade policy, with news of a deal with China sparking flash moves in crypto over the weekend.
“We have yet to receive a statement from Trump directly on the US-China trade deal,” trading resource The Kobeissi Letter noted in part of ongoing X coverage.
“This explains why markets are only up ~1.3% on this otherwise massively bullish news. Uncertainty is still everywhere.”
Kobeissi added that retail earnings reports could also shape market performance over the coming week.
Continuing, trading firm Mosaic Asset argued…
cointelegraph.com