According to Cointelegraph: Bitcoin (BTC) starts a new week in a familiar but cautious state, precariously holding support at around $60,000, as sentiment oscillates between bullish and bearish perspectives. BTC price action remains within a close trading range, leaving the market guessing about the potential catalysts for a major change.
This week promises the possibility of significant crypto market volatility, as U.S. macroeconomic data converges with commentary from the Federal Reserve Chair, Jerome Powell. The combination could stir up a dramatic risk-asset reaction.
Traders are keenly marking levels that could be tested next, especially in the realm of bid liquidity below $50,000 — speculatively seen as a candidate for a possible long-term market bottom. However, in the shorter timeframe, BTC looks more prone to clearing liquidity on the upside.
The week's closure, although barely recognized, indicates Bitcoin (BTC) is rather stable in its known territory. BTC reclaimed $60k on May 3 and has been tenaciously holding since then. This particular level, for many, signifies a critical threshold for bulls.
Further, market sentiment is on these major macroeconomic developments in the U.S. Specifically, the imminent Consumer Price Index (CPI) data release which will likely to have a significant impact on inflation debates and hopes for interest rate cuts, potentially influencing Bitcoin's price movements.
On-chain data also reveals that long-term holders are seizing on the ongoing bull market, increasing their BTC exposure from previous distribution levels. Furthermore, funding rates across crypto derivatives remain neutral, suggesting a potential return of varied market conditions soon.
Meanwhile, the Crypto Fear & Greed Index, which gauges market sentiment is fluctuating between states, pointing towards a degree of uncertainty and indecisiveness among crypto traders.
