Bitcoin remains in battling mode this week as BTC’s weekly close wipes out multiple weeks of downswings. Can it keep the upside?
The leading crypto cautioned optimism after hitting $42,000 during the weekend as it eyed higher zones. Sunday witnessed another push as the overnight session had BTC attacking $43K before retracing.
While Wall Street Monday’s opening may trigger increased turmoil in tech stocks, the crypto environment remains a fascinating one this month. The notable positive correlation makes BTC sensitive to downward and upward fluctuation.
Though BTC noted an impressive jump, market participants still remember the potential of a return to $30,000. Meanwhile, Cointelegraph highlighted some elements that might shape Bitcoin’s action this week. Let’s take a look.
BTC Escapes a Massive Breakdown
Though the lower volume presented a lucrative environment for ‘fakedowns’ and ‘fakeouts,’ the past weekend could not match BTC’s new bullishness. The crypto held $40,000 as support while analysts awaited a flip of $41,000.
Bitcoin’s 2022 yearly open stands at $46,200, and the coin approaches the level after the weekend’s local peak of $43,070 (Bitstamp). Moreover, Credible Crypto analyst trusts that believe Bitcoin is about to steal the show from the alts.
Though the upside stance, data from Whalemap indicates that $38K remains an area of interest for BTC whales, who started adding positions last week. However, BTC hitting $43,000 meant the highest zone since 17 January, erasing downswings that dominated more than fourteen days.
Stocks helped Bitcoin exit the range from $30,000 to $40,000 last week. However, that did not mean an “up only” narrative. Meanwhile, the bid tech presented mixed results, Amazon gaining while Meta saw losses. Such developments provided the curious paradox that BTC took to its advantage.
Will the trend extend to this week? Peter Brandt, a veteran trader, believes inflation is ‘REAL’ and will surprise Fed. That way, Monday’s open in Wall Street might either validate or jeopardize the market again. While publishing this content, futures suggest downtrends after S&P 500 experienced its best week so far in 2022.
Meanwhile, data shows Bitcoin’s correlation with NASDAQ slowly retreating. Moreover, the market awaits January CPI (consumer price index) data release this Thursday, which might mean more headwinds for inflation.
Other things to watch this week are dollar movements and sentiments eying an escape from the ‘fear’ zone. Also, near-term holders taking profits might shape BTC’s price function over the week.