BTC traders wait for $50K bottom: things to know in Bitcoin this week
Bitcoin starts the week above $70,000, yet traders remain cautious and expect turbulence ahead. Despite holding gains from recent lows, analysts warn that short-term relief could be temporary, with liquidity hunts and renewed downside tests still possible. Some forecasts suggest BTC may revisit previous lows before any sustainable recovery.
Many market participants anticipate a ranging phase after weeks of sharp volatility. Analysts note that declining price swings could help establish a new trading zone, allowing traders to reassess positions and search for clearer opportunities as the market stabilizes.
Macroeconomic factors dominate sentiment. Upcoming US CPI data and employment figures may influence Federal Reserve policy expectations, while persistent inflation and uncertainty around future rate decisions continue to pressure risk assets. With markets expecting steady interest rates, investors remain cautious despite occasional relief rallies across stocks, gold, and crypto.
The US dollar is another key driver. Struggles of the DXY to reclaim higher levels raise questions about long-term trends, with analysts divided on whether a stronger dollar could hinder Bitcoin or coexist with further crypto gains. Some comparisons to early 2021 suggest BTC could still reach new highs before the broader cycle ends.
Global developments also add complexity. Japan’s evolving fiscal stance and a weakening yen may reshape capital flows, potentially increasing short-term downside risks for crypto as investors rebalance portfolios. Meanwhile, rising miner deposits to exchanges signal redistribution within the market, raising the chance of additional selling pressure but not necessarily confirming a long-term bearish trend.