As Bitcoin enters a critical week, analysts are keeping a close eye on several factors that could determine its short-term trajectory.
Economic Indicators
Last week’s economic data, such as the CPI and PPI, showed signs of disinflation, which is positive for risk assets like Bitcoin. However, the Federal Reserve has cautioned against being too optimistic about imminent rate cuts.
FOMC Meeting
The Federal Open Market Committee (FOMC) meeting this week will be a key event. The revised dot plot is expected to indicate a more conservative outlook on rate cuts compared to March’s projections.
Support Level
Maintaining the $66,000 support level is crucial for Bitcoin. If broken, sellers could gain control and force liquidations.
Trading Ranges
Analysts expect Bitcoin to trade between $65,100 and $74,100 this week, while Ethereum is projected to fluctuate between $3,388 and $4,025.
External Factors
The performance of US tech stocks, particularly the NASDAQ, is also being watched. The NASDAQ’s recent all-time highs suggest that investors are anticipating a more accommodative monetary policy.
Ethereum’s Performance
Ethereum could start to catch up to Bitcoin, especially with the anticipated launch of spot Ethereum ETFs on Wall Street.
Central Bank Decisions
Rate decisions from the Swiss National Bank and the Reserve Bank of Australia are also on the radar, although no rate cuts are expected.
ETF Flows
Strong ETF flows are essential for maintaining liquidity and supporting Bitcoin’s price.
Conclusion
This week is pivotal for Bitcoin and the crypto market. The interplay of disinflation, Fed communications, key support levels, and external factors will shape the market’s direction. Analysts believe that dips could present buying opportunities for risk assets like cryptocurrencies and stocks.
