An expert analyzed the situation on the market and talked about how it could change in the upcoming week. Expert opinions may not coincide with the editorial position. “RBC-Crypto” does not provide investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
On Sunday, March 31, Bitcoin (BTC) is trading at around $70,000, its price for the past week has increased by approximately 8%. A specialist analyzed the market situation and assessed the prospects for Bitcoin’s price movement over the next seven days.
BTC/USD 70,451 +304 (0.43%)
“The technical picture favors buyers” Financial analyst at BitRiver Vladislav Antonov
The week from March 25 to 31 was relatively calm. The following key factors influenced the crypto market: dynamics of the US dollar, stock indices and futures on them, data on inflation in the US measured by the PCE index, as well as the speech of the head of the Fed Jerome Powell. News of accusations against the KuCoin exchange raised concerns and led to a massive withdrawal of funds from the platform, but did not have a strong impact on the market.
More than $500 million withdrawn from KuCoin exchange after US accusations
On March 25, Bitcoin demonstrated a confident growth of 3.97% and closed at $69,880 per coin. This increase occurred after bulls managed to overcome the important resistance level at $65,430 on Sunday, signaling a break in the local downtrend.
On March 26, the BTC/USDT pair increased by 0.15% to $69,988, reaching an intraday high of $71,561. Buyers took a break, retreating to $69,280.
On March 27, increased volatility was observed. The BTC/USDT pair decreased by 0.74% to $69,469 after an unsuccessful attempt to break above $71,769. The price dropped by 5% to $68,359, but did not go below this level.
On March 28, the BTC/USDT pair rose by 1.89% to $70,780. The price touched $71,500 three times but failed to move higher due to a decline in S&P 500 futures before the close of trading.
On March 29, trading in the BTC/USDT pair ended with a decrease of 1.31% to $69,850. Despite attempts by buyers to develop an upward trend, they failed to hold their positions. During the American session, the price of Bitcoin dropped to $69,000.
Since on this day the US and European exchanges were closed due to Easter holidays, the cryptocurrency market lost its references set by traditional markets. Pressure on prices could have been exerted by published data on inflation in the US, as well as the speech of Federal Reserve Chairman Jerome Powell.
By the time of the closing of trading, the price of Bitcoin had recovered to $69,850, remaining within a four-day sideways trend with a range of $68,350 to $71,550 (the week’s maximum was $71,769).
According to the published data, inflation in the US, measured by the Personal Consumption Expenditures (PCE) price index, rose to 2.5% on an annual basis in February. The core PCE price index also showed growth. These data met expectations but apparently exerted some pressure on the market. Since traditional exchanges were not working, Bitcoin primarily reacted.
The rise in inflation and Jerome Powell’s words about the need to keep rates high may mean that the Federal Reserve will cautiously approach rate changes. Market conditions and new employment data will be key factors for the Fed’s future decisions during the period from April 1 to 7.
The upcoming week will be filled with the publication of important macroeconomic indicators, so increased volatility can be expected in all markets. On April 3, Jerome Powell will speak again.
Currently, Bitcoin is in a sideways trend with a range of about 5% or $3,450. The technical picture remains in favor of buyers. The only potential negative factor could be the strengthening of the dollar after the long weekend. If the markets open calmly on Monday, an exit from the sideways range upwards is expected. Possible technical resistance levels could be $72,650 and $73,800, according to BitRiver’s estimates, while sellers’ targets are $65,800 and $60,800.
It is also important to note that the issuers of nine new spot Bitcoin ETFs launched on January 11 currently own more than 500,000 BTC worth $35.2 billion at the current exchange rate. BlackRock holds the first place in terms of the number of coins in storage with approximately 250,000 BTC, Fidelity is in second place with about 150,000 BTC, and Bitwise closes the top three with 50,000 BTC. With the upcoming halving, demand for Bitcoin remains high, so support from institutional investors will remain for a long time.