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Bitcoin price forms a technical continuation pattern pending inflation data. Where will he be heading this week?

Last week he witnessed Bitcoin BTC Price Secondary transactions are limited to a very narrow range of $65,500 to $70,000. Referring to the state of market equilibrium between buyers and sellers, with the intensity of Bitcoin ETF purchases decreasing over the past two weeks, in contrast to the increasing buying activity of whales.

This week, markets are expected to focus on inflation data which is important for the US interest rate decision. From a technical point of view, a symmetrical triangle technical pattern has been formed which can determine the market direction for us in the coming days.

Bitcoin ETFs Decline, Whales Advance

In Reports We previously highlighted that despite the negative flows of Bitcoin ETFs at one point, the price continued its upward trend, indicating a decline in the influence of these funds on the market.

Blockchain data indicates a major buying frenzy by Bitcoin whales. They purchased over 100,000 Bitcoin units, worth over $7 billion.

In this context, this indicates Data The CryptoQuant platform, which specializes in the analysis of blockchains, has confirmed that so-called “collecting addresses” continue to purchase large quantities of the main currency during the current month, with increasing entry rates to these addresses.

Flows to collection addresses have seen a significant increase this month, indicating that these investors continue to buy.

On the first day of the month, the index recorded a sharp rise of 21,400 BTC. This equates to more than $1.4 billion at the current exchange rate.

The great wave of whales appears to have been one of the main factors in maintaining stability. Bitcoin BTC Price Above the $65,000 level, despite profit-taking operations in the recent period.

Between the start of the year and the end of February, these huge entities were constantly purchasing Bitcoin in increasing quantities. As his possessions saw a constant increase.

Some analysts believe that this market buying will continue and push the price to new levels.

Read also: Bitcoin Whales, Not ETFs, Are the Secret to the Recent Rally

US inflation data

Outflows from spot Bitcoin ETFs are the only reason for the selling pressure on the leading cryptocurrency. Some mixed statements from monetary policy makers have dimmed market hopes for an interest rate cut by the Federal Reserve during the month of May.

Federal Reserve Chairman Jerome Powell said monetary policy expectations have not changed, raising the possibility of a 75 basis point interest rate cut over the course of the year.

In contrast, other Federal Reserve officials have expressed reservations about committing to a predetermined monetary policy.

For example, Federal Reserve member Michelle Bowman noted the stagnation of anti-inflationary efforts and her discomfort with cutting interest rates before prices calm down. He also indicated the possibility – but not the probability – of further interest rate hikes.

According to For the data CME Group There is a 97% chance that the Federal Reserve will maintain its interest rate targets at its May meeting.

As a result, U.S. Treasury yields have risen and the appeal of high-risk assets such as digital currencies has declined, leading to a decline in demand for Bitcoin. This trend is expected to continue until data indicating otherwise emerges.

Market participants are now focusing their attention on the Federal Reserve's upcoming decisions.

In this context, the markets are awaiting the publication U.S. Consumer Price Index (CPI) data Wednesday. If the figures are higher than expected, it will confirm market fears that efforts to curb inflation will fail.

If inflation continues to rise, the US Federal Reserve could take a more hawkish stance. The strength of the U.S. labor market could give policymakers enough room to be patient before moving to more flexible policy. This means a delay and limited reduction in interest rates during this year.

The importance of the US inflation report and its impact on the markets

Therefore, traders are advised to monitor upcoming inflation data and prepare for market volatility. The surprise rise in inflation, particularly in the core index, could reinforce the upward trend in US Treasury yields observed in early April. This would strengthen and weaken the US dollar Bitcoin BTC Price.

However, if the numbers are lower than expected, the opposite could happen in the markets, leading to lower bond yields and a weaker dollar.

Technical Analysis of Bitcoin BTC Price and Symmetric Triangle Pattern

Bitcoin Price BTC However, this does not fall outside the scope of the technical levels that we explained in our previous analyses.

4-hour chart of Bitcoin BTC price
4-hour chart of Bitcoin BTC price

The price rebounded from a strong support zone formed by the ascending trendline and the 38.2% Fibonacci level at the price of $65,500.

is back BTC Price Now trading below the 23.6% Fibonacci level at $68,500. But it remained below the upper border of the symmetrical triangle on the 4-hour chart.

This model is often considered a neutral model (some call it continuous). In any case, the trading strategy remains the same, that is, crossing one of the limits means that the price will move in that direction.

This means that if the upper limit is breached, we could see the price rise up to $73,500 or even higher depending on the strength of the rise.

If the lower boundary (which corresponds to the ascending trendline) is broken, we will see the price drop to the $60,500 level or perhaps lower.

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