Bitcoin (BTC) starts a new week with consolidation in the air amid some of the least volatile conditions ever.Despite losing 5% in an hour last week,
Bitcoin (BTC) starts a new week with consolidation in the air amid some of the least volatile conditions ever.
Despite losing 5% in an hour last week, Bitcoin’s subsequent lack of volatility is on every trader’s mind.
The question is whether that will change in the coming days.
There are plenty of potential catalysts, from macroeconomic data to exchange setups and more, but which will win out — and in which direction it will send BTC price — remains to be seen.
Behind the scenes, it remains business as usual for Bitcoin network fundamentals, with miners preserving their newfound buoyancy and ready for new all-time highs in difficulty.
Cointelegraph takes a look at these major market-moving factors and summarizes opinions as to how they might shape BTC price action this week.
Bitcoin price stays paralyzed after weekly close
While anything can and does happen in Bitcoin, the weekend was marked by one word only when it comes to BTC price action — boring.
After flash volatility on March 3 due to a combination of Silvergate bank concerns and exchange margin calls, BTC/USD has remained eerily quiet.
Data from Cointelegraph Markets Pro and TradingView proves the point, with spot price moving within a barely perceptible range ever since.
Bulls nonetheless failed to recover much of the lost ground, leading Bitcoin to finish the week down around 5.1% on Bitstamp.
For Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, there is still reason to believe that the market will soon draw a line under the current short-term trend.
“Boring price action on Bitcoin since the correction, but still acting in support here,” he told Twitter followers on March 6.
“Indices bounced already and seem to continue to do so. Might have another sweep of the lows and then reverse up, losing $21.5K = trouble time.”
A further post eyed a potential bounce target for $23,000 should the bulls reclaim some form of strength.
“I just want to see some price movement today if I am honest,” popular trader Crypto Tony continued.
“I remain short as of few days ago with my stop loss at $23,200 to remain transparent. I would like to see a move up to $22,800 before any downside.”
Fellow trading account Daan Crypto Trades meanwhile noted that BTC/USD had already closed the modest CME futures gap from the weekend.
$22,000 or $22,650 needs to be crossed in order for Bitcoin to provide “clear direction,” he acknowledged.
$BTC Quickly closed the gap for the most part. There is a tiny gap open of about $20 but we see that quite often. Would not value it too much personally.
Anyways, still in chop/range mode so no clear direction until a clean break of 22000 or 22650 in my opinion. https://t.co/tOigpLO71q pic.twitter.com/Wu1J7Bjxdg
— Daan Crypto Trades (@DaanCrypto) March 6, 2023
For trading resource Skew, the weekly open at around $22,300 should function as a “pivot” for near-term price performance.
“Probable that this weekly open price will trade as a pivot for 1D breakdown towards weekly demand ($19K) else HL with confirmation above $23K,” a tweet about the daily chart stated.
“We’re in the chop zone currently. (weakness or strength in coming day will be leading of momentum/direction).”
All eyes on Fed’s Powell as macro signals return
The macroeconomic scene begins to heat up in the coming days after a cool week, with Jerome Powell, Chair of the United States Federal Reserve, due for two rounds of testimony.
A classic source of market volatility, Powell’s words to the U.S. Congress’ House Financial Services Committee could flip the overall mood — at least briefly — depending on the language he uses when it comes to future economic policy.
At stake in particular are interest rates, with the next decision on a benchmark Fed rate hike still two weeks away.
“Expecting Bitcoin volatility to pick up during midweek next week during Powell’s testimony,” trader, analyst and angel investor Crypto Santa confirmed in part of weekend Twitter posts.
Popular analytics account Tedtalksmacro also flagged nonfarm payrolls data and a statement and press conference from the Bank of Japan toward the end of the week as crunch points.
Key events for the week ahead
Tuesday – RBA statement/presser + Powell testifies to the Senate Banking Committee.
Wednesday – ECB’s Lagarde + Fed’s Powell speak
Friday – Bank of Japan statement/presser
Friday – US NFP employment data— tedtalksmacro (@tedtalksmacro) March 5, 2023
As Cointelegraph reported, the liquidity decisions of central banks outside the U.S. is being increasingly considered as an important influence on Bitcoin markets.
“US dollar liquidity is on the rise so far in March (~+100bn inflows),” Tedtalksmacro added.
“Liquidity leads, price…
cointelegraph.com