Bitcoin has experienced a rise in volatility during the weekend testing both critical support levels below $57,000 and major resistance above $59,000. The crab-like price action seems set to continue as holidays in the U.S. could reduce trading volume across the board.
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As of press time, Bitcoin trades at $58,277 with a 1.7% loss in the daily chart.
Bitcoin Bears Could Return, Why BTC Is Not Out Of The Woods
Analyst Yuya Hasegawa from Bitbank believes Bitcoin could extend its losses during the week due to the macroeconomic outlook. A potential price range for BTC’s price sits between $52,000 and $65,000, a break above could suggest a change of trend. Hasegawa said:
From a macro perspective, the upward pressure on the US 10-year breakeven inflation rate has been somewhat alleviated due to lower oil prices, suggesting weaker inflation-hedging demand for BTC. But the market’s inflation expectation could rebound on this week’s US PCE announcement on 24. Until then, BTC could extend its loss due to technical factors, with a possible short-term drop to the lower band of Ichimoku cloud ($53.3k), and the $60k psychological level is expected to work as a resistance for the price.
At the time of writing, Bitcoin has been rejected from $59,500 and moves sideways around $58,000. In the long term, bullish fundamentals remain, but a return to uncharted price territory could prove difficult as there are many variables with apparent influence in the crypto market.
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