The longest weekly losing streak in Bitcoin history is finally broken, but the mood among analysts is anything but unanimously bullish.
Bitcoin (BTC) starts a new week with some fresh hope for hodlers after halting what has been the longest weekly downtrend in its history.
After battling for support throughout the weekend, BTC/USD ultimately found its footing to close out the week at $29,900 — $450 higher than last Sunday.
The bullish momentum did not stop there, with the pair climbing through the night into June 6 to reach multi-day highs.
The price action provides some long-awaited relief to bulls, but Bitcoin is far from out of the woods at the start of what promises to be an interesting trading week.
The culmination will likely be United States inflation data, this itself a yardstick for the macroeconomic forces at world globally. As time goes on, the impact of anti-COVID policies, geopolitical tensions and supply shortages is becoming all the more apparent.
Risk assets remain an unlikely bet for many, as central bank monetary tightening is seen to be apt to pressure stocks and crypto alike going forward.
Bitcoin’s network fundamentals, meanwhile, continue to adapt to the surrounding reality and its impact on network participants.
Tenth time’s the charm for BTC weekly
It was a long time coming, but Bitcoin has finally closed out a “green” week on the weekly chart.
BTC/USD had spent a record nine weeks making progressively lower weekly closes — a trend which began in late March and ended up being the longest ever in its history.
On June 5, however, bears had no chance, pushing the pair to $29,900 before the new week began, this still being approximately $450 higher than the previous week’s closing price.
That event sparked several hours of upside, with local highs totaling $31,327 on Bitstamp at the time of writing — Bitcoin’s best performance since June 1.
While some celebrated Bitcoin’s newfound strength, others remained firmly cool on the prospects of a more substantial rally.
Cryptowallcity contributor Germaine Bernhard eyed the open CME futures gap from the weekend, this providing a lure for a return to $29,000.
“Still expecting this to be happening on Bitcoin,” he told Twitter followers.
“A drop towards the CME Gap at $29K would make a lot of sense before a short reversal towards $31.5K.”
A look at order book data reinforces the friction bulls are likely to face in the event of a continued breakout. At the time of writing, the area around $32,000 had more than $60 million in sell-side liquidity lined up on Binance alone.
For Il Capo of Crypto, a Twitter analytics account well known for its sobering takes on upcoming BTC price action, there was likewise little to feel confident about.
Nonetheless, the market was not without its optimism.
“Having a plan is more important than guessing the correct direction,” popular Twitter account IncomeSharks argued.