Bitcoin (BTC) is fighting for the bull trend as the new week begins as the market acts within a crucial zone.After closing the weekly candle at just b
Bitcoin (BTC) is fighting for the bull trend as the new week begins as the market acts within a crucial zone.
After closing the weekly candle at just below $27,000, BTC/USD is attempting to cement support as a stubborn trading zone holds.
The stakes are already high — last week saw a flash dip below $26,000 and two-month lows for Bitcoin, making traders fearful of a larger bearish breakdown to come.
While this has not materialized, nerves remain on both shorter and longer timeframes.
Where is price action likely headed next? A relatively cool week of macro triggers means less chance of volatility from external sources.
Add to that the upcoming difficulty adjustment taking it to yet another all-time high, and the case could well be made for upside continuation.
Cointelegraph takes a look at some of the major BTC price factors affecting the week ahead.
Bitcoin price weekly close offers mixed signals
After clinching a weekly close at around $27,930, Bitcoin is already headed higher, reaching $27,550 overnight, data from Cointelegraph Markets Pro and TradingView shows.
While encouraging, the close nonetheless marked Bitcoin’s weakest since mid-March – something popular trader and analyst Rekt Capital is keenly aware of.
In part of Twitter analysis on the day, he warned that $27,600 was now the level to flip to support.
“First, BTC failed to reclaim the $28800 level on the Weekly (orange). And then $BTC Weekly Closed below $27600, failing to hold it as support (black),” he summarized alongside a chart showing recent weekly-timeframe events.
“Turn $27600 into resistance and this could enable further downside into the low $20000s.”
That perspective reinforces existing warnings from the weekend, and adds to a small group of well-known pundits still entertaining the possibility of a significant BTC price retracement.
Continuing, however, Rekt Capital now sounded more upbeat about Bitcoin overall, looking beyond the current correction and its potential target.
“Bitcoin has already broken its Downtrend. Now it’s all about continuing the new Uptrend,” another tweet reasoned.
“Whether a retest is needed or not is the question. But history suggests the mid-term to long-term outlook looks bullish.”
On weekly timeframes, the key trend line looming large thus remains the 200-week moving average (WMA), which at $26,200 has already received its first retest.
Rekt Capital described the retest as “successful,” but reiterated the need to reclaim $27,600 next.
“Situation is very dynamic at this time,” he added.
Litecoin leads Bitcoin, altcoin “continuation”
Others gave more credence to the strength of short-timeframe rebound action into the new week.
Michaël van de Poppe, founder and CEO of trading firm Eight, described BTC/USD as “ready for continuation.”
“Holding crucial level at $27K and we’ll be ready for a potential run towards the highs,” part of a Twitter update stated, adding that Litecoin (LTC) was giving a taste of what might be to come.
LTC/USD traded up over 8% in the 24 hours to the time of writing, hitting its highest since May 6.
Likewise preferring the longer-term trend was popular trader Moustache, who considered current weaker price moves as Bitcoin and altcoins taking a “breather.”
“Opinion remains unchanged. Just a breather before things go really crazy,” commentary on a chart of the total crypto market cap read.
“To the bears: I’ll say it once and never again. You cannot compare a monthly chart with a daily chart.”
Trader and analyst Trader Tardigrade, also known as Alan, made similarly bullish forecasts based on Bitcoin’s weekly relative strength index (RSI) readings.
For him, even the weekly close was cause for optimism.
#Bitcoin weekly candle closed.
We’ve seen $BTC closed above a major support with stop hunt done.
RSI stays above 50 indicating a Bull bias.#BTC #Crypto pic.twitter.com/VXg6kM78dQ— Trader Tardigrade (@TATrader_Alan) May 15, 2023
Flood of Fed speakers culminates with Chair Powell
Those seeking some macroeconomic risk asset price triggers may be left out this week, as events in the United States are set for calm.
After a ream of macro data prints the week prior, the event of the coming days is set to come in the form of a speech by Jerome Powell, Chair of the Federal Reserve, on May 19.
As financial commentary resource, The Kobeissi Letter, notes, a total of 14 Fed officials are due to deliver commentary in the coming days, with plenty of potential conflicts in store.
You can’t make this up, here the Fed members speaking this week:
1. Bostic – Monday
2. Kashkari – Monday
3. Barkin – Monday
4. Cook – Monday
5. Mester – Tuesday
6. Bostic – Tuesday
7. Barr – Tuesday
8. Logan – Tuesday
9. Jefferson – Thursday
10. Barr -…
cointelegraph.com