Sohrab Khawas
With the massive crash with the release of employment data by the U.S. Labor Department last week, the BTC price trend witnessed a slowdown. As Bitcoin loses the $70,000 level, the long-coming support trendline and the demand at lower levels are under pressure.
With the biggest cryptocurrency under pressure, the broader market faces resistance and remains hesitant for a quick bounce. Further, the sentiments are mixed or hawkish with the FOMC meeting coming on June 12th.
Will the increased volatility in the event of FOMC result in an extended crash in Bitcoin price to hit the $60,000 level? Or, the potential rate cut will pump the BTC price to reach the $80K mark?
Let’s examine our detailed price analysis for a clearer view of the BTC price trend. You can also check out our Bitcoin price prediction to determine the chances of Bitcoin hitting the $100,000 milestone this year.
BTC Price Performance
The BTC price trades at $69,533 with minimal intraday movement in the early Asian trading hours. Further, with radio silence over the weekends, Bitcoin remains over the $68,800 mark as the volumes shrink.
However, following the bearish reversal last week, the BTC price trend tests the support trendline of the ongoing recovery rally. Further, the underlying sentiment supports the possibility of a bullish comeback with an inverted head and shoulder pattern.
With a resistance trendline acting as the neckline of the inverted head and shoulder, a bullish breakout will pump Bitcoin for a fresh bull run.
Dovish Derivatives Tease A Bull Run
At press time, Bitcoin’s funding rate is at 0.00971315 per cryptoquant, reflecting a cost to maintain long positions. Meanwhile, open interest has soared to $19.1 billion, marking a 2.51% increase in the last 24 hours and a 9.98% rise over the past week.
The underlying sentiments are turning dovish with the improving data in the derivatives market. Hence, the derivatives market expects an uptrend in the BTC price.
Where Is Bitcoin Headed This Week?
With the bullish momentum slowly gaining momentum, the Bitcoin price could lead to a breakout rally this week. According to trend-based Fibonacci levels, the bull run in the BTC price can target $81,873 or the 61.80% level this week.
However, the FOMC meeting is a huge event that is a double-edged sword for Bitcoin. Hence, with the limited chances of a rate cut due to the jobs data, the price action trades await a breakout.
On the flip side, a crash on June 12th can put stress on the support trendline and test the 50D EMA at $66,961 upon breakdown.
