Bitcoin Has Reached a Tipping Point – What to Expect This Week?
As volatile as it is, Bitcoin has an important week ahead of it as market participants constantly look to several indicators and events that could determine future market directions in the short term.
Crypto guru “Ted” presented the information in the form of analysis , to survey the most sensitive areas.
First, Ted outlines the broader macroeconomic background. US CPI (Consumer Price Index) and PPI (Producer Price Index) data received deflationary concerns, showing positive results for risk assets. "Both CPI and PPI showed evidence of deflation, which is not negative for risk assets, with the deflationary trend continuingTed said. He also warned the market that the central bank's hints of a possible reactionary approach "wait and see” can be a headache.
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Bitcoin miners continue with the mass sell-off for more than a monthA greater alignment of the Fed's forecasts with traders' expectations should bolster the central bank's efforts to deliver more effective communications about interest rates. The preservation of Bitcoin above the $66,000 support level was the most important circumstance to pay attention to. Ted emphasized the importance of this parameter, stating:
"It is essential that Bitcoin defends its support at $66,000. Otherwise, the sellers may get a top position in the market and the bulls will have to sell their positions quickly or face a liquidation. "
In that case, it symbolizes the main barriers to the entire market.
Седмични диапазони отразяват предпазлив оптимизъм от страна на трейдърите по отношение на Биткойн и Ethereum . BTC may continue to move between $65,100 and $74,100, and Ethereum between $3,388 and $4,025. According to Ted, “this week is critical for sustaining the short-term trend of BTC (and thus the broader crypto market)”.
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Here's what Bitcoin needs to head for a new price recordETF flows, which slowed last week due to market jitters ahead of key macro events, are also expected to play a crucial role. Ted said:
"In the previous week, there was some slowdown in the movements of Bitcoin ETFs that are traded on the exchanges. Since profitable BTC transactions can bring dollars into the system, therefore the weight will depend on the volume of exchange rates".
"ETF flows', will be the cause of BTC's strength recovery which could happen during the week. ETF outflows should be seen as a red flag for illiquid securities and speculative trading over trades. Also, the outflows are not too favorable for the BTC price as they simply run to the risk assets
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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