Bitcoin has entered an uncertain week, as key support remains inaccessible for bulls, leading to a precarious position in the market. The effects of legal battles in the United States have taken a toll on both Bitcoin and altcoin performance, with support below $26,000. The week ahead promises a slew of volatility triggers in different forms such as U.S. macroeconomic data releases and important steps in crypto legal battles.
Though Bitcoin price closed below the major trend line and some fear additional downside, others remain optimistic about the potential for upside. A possible futures gap between $26,150 and $26,500 provides a chance for recovery, while long-term resistance is not expected to pose too much of a problem for the cryptocurrency. Some traders and crypto enthusiasts still view $40,000 as a prime target.
It is crucial to monitor the wider economic and geopolitical establishment this week since multiple crypto price triggers are anticipated. Attention should be paid to the U.S. Securities and Exchange Commission (SEC) versus certain exchanges, as well as macroeconomic factors such as Consumer Price Index (CPI) inflation. The anticipated pause in interest rate hikes could bring a more favorable environment for risk assets, possibly leading to a rally in Bitcoin’s price.
Aside from the macro situation, it is essential to observe the ongoing legal proceedings related to Coinbase and Binance to gauge any price movements. Furthermore, Bitcoin’s network fundamentals have been growing stronger, with hashrate and network difficulty aiming for new all-time highs. This could serve as a bullish indicator that might counterbalance short-term price pressures.
Despite Bitcoin’s precarious state, the week ahead may very well provide opportunities for both recovery and growth. Investors should keep an eye on both internal and external crypto market factors and be prepared for potential surprises that might shape the future price action of Bitcoin and other cryptocurrencies.
Source: Cointelegraph
