Bitcoin (BTC) begins a new week barely clinging to $30,000 as a “bearish divergence” sets the tone.
After a quiet weekend, BTC price action faces a potential pullback period within its broader bullish trend, traders say.
What could be on the menu for the market this week?
After a relative period of calm, external triggers are back for risk assets, with a slew of United States macroeconomic data releases combining with multiple speeches from Federal Reserve officials.
Add to that some interesting dynamics around U.S. BTC buying now in play and the recipe for volatility is there.
Cointelegraph takes a look at these factors and more in the weekly rundown of what might move markets in the coming days.
Limp $30,000 support gets traders hungry for BTC price dip
Bitcoin may have closed the week at just above $30,000, confirmed by data from Cointelegraph Markets Pro and TradingView, but its strength is now looking less convincing.
A dip into the $20,000 zone immediately afterward set the tone for traders, who believe that a retracement period could enter before upside resumes.
“Will be looking for trend continuation so another higher low between current price & $28K,” trader Skew explained in his short-term forecast.
“Else obvious weakness leads to a break in the 1W structure (Equal high & LL below $25K).”
Fellow trader Jelle eyed a warning sign on weekly timeframes.
“Bitcoin locked in a weekly bearish divergence overnight,” he told Twitter followers about relative strength index (RSI) behavior after the candle close.
“Time to play defense for a while. The bull market is coming, but pullbacks are part of the game. Bidding lower, let’s see.”
For Crypto Tony, the downside could be limited to $29,500, this complementing a previous trip to new yearly highs the week prior.
“Sweep of $29,500 makes sense to me as the bulls just seem weaker and weaker right now. We have a sweep of the liquidity above us, so now it is time to grab the liquidity below us If you are not yet in a position, be sure to wait for this test and reclaim,” he summarized.
A further post zoomed out to predict up to 40% higher for BTC/USD in 2023, this nonetheless to be followed by a “bigger correction.”
8 Fed speakers accompany major macro data week
Macro commentators have their work cut out…
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