Bitcoin (BTC) strengthened near two-week highs by Sunday’s weekly close as investors braced for fresh market turmoil.
Key Points:
- Bitcoin is nearing two-week highs, but Mondays were “terrible” for BTC price action, a trader warns.
- BTC/USD is in the process of deciding the fate of its 200-week moving average.
- Crypto Market Analysis Sees ‘Greener Shoots’ Based on Latest US Macro Data.
Trader: The last seven Mondays have been “absolutely terrible” for the BTC price
Data from TradingView showed that BTC/USD is centered at $62,700, at: key long term trend line200-week straightforward moving average (SMA).
Four-hour BTC/USD chart with 200-week SMA. Source: Cointelegraph/TradingView
Bulls managed to reach $63,450 on Saturday thanks to smaller order books on the exchange and a three-day holiday weekend in the US.
“I see stronger passive supply here putting pressure on price upfront,” an Exitpump commenter wrote in his comment latest analysis on X
Data from the BTC order book. Source: Exitpump/X
Trader Daan Crypto Trades has signaled the liquidation of tiny positions as the price rises, based on data from CoinGlass meaning the 24-hour cryptocurrency total was $167 million.
“Classic short position, price rises to a level where everyone loses until forced coverage takes care of the rest” – he commented on X
“The question now is whether $62.6k (weekly 200mA) is support or whether it was simply a liquidity clearing before rolling over again.”
BTC/USD and the history of cryptocurrency liquidation (screenshot). Source: CoinGlass
Another Killa trader issued a warning, reiterating that there has been solemn price weakness over the past seven Mondays.
“Mondays 7/7 were absolutely terrible for $BTC,” they told X’s followers.
“Will we repeat the exact same pattern next week?”
Bitcoin ETFs are contributing to a “greener drive” for cryptocurrencies
In novel analysis published on Friday, trading firm QCP Capital noted potential growth tailwinds for cryptocurrencies and risk assets.
Related: Bollinger Bands Maker Sees Bitcoin Bear Market End, W-Shaped Reversal.
These included renewed net inflows into US Bitcoin spot funds (ETFs).
How – Cointelegraph reportedlast week’s US nonfarm payrolls report came in below expected levels, causing hawkish expectations for Federal Reserve interest rate increases to soften.
“The clearest dovish signal was the 2% increase in the gold price, although this can be interpreted more as a hedge of the real interest rate and a safe haven than a belief in growth,” it admitted.
“However, cryptocurrencies are showing greener shoots: Spot BTC ETFs snapped a six-session streak of outflows to raise $224 million on Thursday, their first positive print in over a week and an early sign that dip buyers are returning to the market after roughly $2.4 billion in buyouts.”
Probability of Fed target rates at July 29 FOMC meeting (screenshot). Source: CME Group
The latest data from the CME Group FedWatch tool he saw a nearly 80% chance that the Fed would keep interest rates at current levels at its July 29 meeting.
QCP added that favorable inflation data in the form of the Consumer Price Index (CPI) would be needed by then to “broadly confirm the initial dovish sell-offs.”
