Key Points
- Bitcoin climbed above $63,000 at the start of the week, but a retrace might be imminent, according to Bitfinex analysts.
- The market’s movements are currently being driven more by the news agenda than fundamentals.
Bitcoin started the week impressively, surging past the $63,000 mark. However, a potential market retraction is anticipated by experts at Bitfinex.
In the past 24 hours, Bitcoin’s value has seen a 5% increase and a 13% rise over the week. A combination of factors has contributed to these gains. These factors include the end of the German government’s Bitcoin sell-off and a positive sentiment surrounding the former U.S President, Donald Trump. Over the weekend, Bitcoin’s price surpassed its 125-day range low of about $60,200, following a dip to lows of $53,500 earlier in the week.
Uncertain Market Movements
Despite the potential for the upward trend to continue, Bitfinex analysts suggest that traders might have to be patient for definitive movements.
In the recent issue of Bitfinex Alpha, these analysts posited that Bitcoin’s recent surge above the $60k mark could replicate patterns observed in previous weeks. This pattern involves a retracement following a brief weekend rally that typically ends by mid-week.
News and Market Sentiment
Following the recent sell-off, the Bitcoin Fear & Greed Index has shifted from fear to neutral, indicating an improvement in market sentiment. Concerns about supply have lessened, and the market has adapted to new developments since Saturday.
The analysts noted that the market’s ability to rapidly assimilate new information and adjust expectations is significant. However, they stressed the importance of focusing on the market’s reaction during the first two trading days of the week.
The $60,200 area, which is crucial as a potential support level, could also become a resistance zone. If the bulls push higher decisively, Bitcoin could retest resistance levels near the $70k mark. However, a dip could invite new downside pressure, especially if selling re-emerges.
Weekend Rallies and Market Predictions
Weekends have offered respite for bulls over the past few months, according to Bitfinex analysts. However, bears have consistently re-emerged around mid-week for the past eight weeks, dating back to June 8, when prices last hovered around $70,000.
The “news agenda” might therefore steer the market’s short-term movements. Traders, however, might need to consider the potential for new challenges, with Mt. Gox creditors being a significant factor to watch.
