The Week Ahead for Bitcoin
This new week has Bitcoin (BTC) strutting around like it just found a fancy hat at a thrift shop. After a surprisingly chill weekend, BTC/USD managed to capture its most impressive weekly close since February. No more worrying about plummeting under $40,000—at least for now. With all signs pointing to a potential bullish scenario, the big question remains: can Bitcoin surpass that pesky resistance above $42,000? It’s a case of ‘close, but no cigar’ for the market this month.
Global Markets Forget About War
Holger Zschaepitz, a market analyst, recently pointed out that global markets appear to be turning a blind eye toward the ongoing Russia-Ukraine tensions. It’s ironic—only a month ago, these issues were causing havoc, and now they seem to be little more than a bad memory. With stock markets replying back with a shrug and looking to higher tides in China, Bitcoin is holding its breath to see if it can keep riding the wave.
Correlation: Bitcoin and Tech Stocks
Bitcoin’s correlation with technology stocks is as tight as a bear hug from your grandma. Trading suite Decentrader recently noted that since the start of the Russia-Ukraine conflict, Bitcoin has been a tagalong on the tech stocks roller coaster. Arthur Hayes, former BitMEX CEO, believes it won’t be easy to unshackle Bitcoin from big tech until there’s a serious narrative shift about its value. Only time will tell if that narrative gets a facelift.
Bitcoin’s Technical Indicators: Make or Break
This past week, Bitcoin posted an impressive engulfing candle right before the close—like a surprise party no one saw coming. Yet, caution is warranted. Analysts are still waving red flags due to a “death cross” pattern that appeared in the weekly chart. It’s likely just a passing cloud, but it serves as a reminder to look before leaping.
Sentiment Shifts: Fear to Greed
As the market stabilizes, a little sunshine peeks through the clouds of “extreme fear” that hung over us for weeks. Crypto sentiment is carefully shifting, with the Crypto Fear & Greed Index fluttering its wings back to the “fear” zone. Investors might feel daring enough to make a move without immediately diving back into panic mode.
