Bitcoin makes a grand recovery this week, but the overall downtrend will keep investors worries
|- Bitcoin price dipped further to the downside this week, another 15%,
- BTC price needs to provide a bullish weekly candle to set further upside.
- Upside potential could be limited by only 11% of gains as the downtrend is still in place.
Bitcoin (BTC) price was just inches away from slipping further away below as investors mulled over several economic, central bank and geopolitical issues. With that, BTC price dipped towards $32,650 and was just inches away from sliding in a perfect fade-in zone where bulls would be able to scope up large chunks of Bitcoin at historical discounts. But going into the close on Friday, the Nasdaq rallied sharply, and with that, Bitcoin price looks to be set for next week to at least test the downtrend barrier.
Bitcoin bulls could get optimistic, but the positive sentiment is thin
Bitcoin price was gaining much media attention at the beginning of this week as global markets were on the back foot. In general, cryptocurrencies were on the chopping block in a significant portfolio reshuffle. Price action in BTC dipped towards $32,650 and saw bulls turning the tide as Bitcoin price traded further into the trading week. Investors could shrug off the negative sentiment, and Bitcoin profited from that turn to erase some occurred losses.
BTC price will attempt to close above $38,073 going into Sunday evening, setting the stage for a return towards $40,000 and somewhere next week, $40,750 could be reached. With that, the red descending trend line from November will come into play and will need all stars aligned for bulls to break it. If market sentiment and bulls lack firm conviction, a failed test could offer a perfect bull trap and entry for bears to push price-action back to $32,650.
BTC/USD weekly chart
Global market data could keep investors mulling once again as the risk is arising that the global economy is set for rather stagflation than a reflation trade, where inflation will drag on growth and investors will look for safe havens and defensive stocks. That would spell negative news for Bitcoin as cryptocurrencies are more on the risk-end of the spectrum. With bulls pulling their funds, expect a return to $32,650 and danger of slipping further in the danger zone towards $32,050, trading in that fade-in zone as the last line of defense and window of entry for bulls, as bears will otherwise attempt to breach $30,000.
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