BTC Climbs Toward $63.5K Ahead of Week's End While Analyst Cautions About Monday's Poor Performance
Bitcoin climbed to its strongest position in approximately two weeks during the weekend period, though historical data suggests BTC faces challenging price movements on Mondays.
Bitcoin (BTC) held steady near its strongest levels in fourteen days heading into the weekly close on Sunday as market participants braced themselves for potential new volatility.
Key points:
- Bitcoin reaches its strongest position in fourteen days, though a trader cautions that Mondays have proven "terrible" for BTC price movements.
- BTC/USD is currently determining whether it can hold its 200-week moving average level.
- Analysis of the cryptocurrency market identifies "greener shoots" following recent US macroeconomic data releases.
Analyst Notes: Previous Seven Mondays "Absolutely Terrible" for BTC Valuation
Information from TradingView revealed BTC/USD concentrating around the $62,700 level, which represents a significant long-term trendline marker, specifically the 200-week simple moving average (SMA).
Those betting on price increases successfully pushed Bitcoin to $63,450 on Saturday during a period characterized by reduced liquidity on exchange order books and a three-day holiday weekend in the United States.
"Observing more robust passive supply at this level applying downward pressure on price from above," market observer Exitpump stated in their most recent analysis posted on X.
Market analyst Daan Crypto Trades highlighted the liquidation of short positions as the valuation climbed upward, with information from CoinGlass indicating the 24-hour cryptocurrency liquidation total reached $167 million.
"Textbook short squeeze, valuation gradually increases into a zone where everyone's establishing short positions until forced covering completes the move," he noted on X.
"Now the critical question is whether $62.6K (Weekly 200MA) maintains as support or if this was simply liquidity being cleared prior to declining once more."
Another market analyst Killa offered a cautionary note, emphasizing that the previous seven Mondays had all experienced substantial price declines.
"7/7 Mondays have been absolutely terrible for $BTC," they communicated to X followers.
"Will we repeat the exact same pattern next week?"
Bitcoin ETFs Play Role in Cryptocurrency's "Greener Shoots"
In fresh analysis released on Friday, trading firm QCP Capital identified potential positive catalysts developing for cryptocurrency and risk-oriented assets.
Among these factors were fresh net inflows returning to the US spot Bitcoin exchange-traded funds (ETFs).
As Cointelegraph documented, the previous week's US nonfarm payrolls report delivered figures beneath anticipated levels, triggering a reduction in hawkish expectations regarding interest rate increases by the Federal Reserve.
"The most obvious dovish signal was a 2% surge in gold, though that appears more as a real-rate and safe-haven hedge rather than growth conviction," it recognized.
"Crypto, though, is showing greener shoots: BTC spot ETFs snapped a six-session outflow streak to pull in $224mn on Thursday, their first positive print in over a week and an early sign that dip buyers are stepping back in after roughly $2.4bn of redemptions."
The most recent information from CME Group's FedWatch Tool indicated nearly an 80% probability of the Fed maintaining rates at existing levels during its July 29 meeting.
QCP noted that prior to that date, favorable Consumer Price Index (CPI) inflation data would be necessary for "broader confirmation of a front-end dovish repricing."