Key Notes: –
- The upcoming week is expected to be crucial for Bitcoin, with events such as the release of economic indicators, the Ripple v. SEC case, and the FED interest rate decision.
- Analysts anticipate potential price volatility based on the outcomes of these events, particularly the U.S. inflation data release and the FED interest rate decision.
- Renowned crypto analyst Mickybull Crypto highlights an inverse head-and-shoulders pattern on the weekly BTC/USD chart, suggesting a bullish price reversal and a potential target of $40,000 if confirmed.
For more than two months, Bitcoin is struggling to break out of the sideways channel. In fact, the price is struggling in a tight range since 22nd March. Most investors have now stopped showing any interest in Bitcoin due to the extremely boring price action. On Monday, Bitcoin shook everyone with massive selling pressure.
Most altcoins made new lows in the current selling session that began in 2022. However, Bitcoin’s price recovered sharply right next day. And since then, Bitcoin has again set a tight price range. The bulls are bears are giving a tough time to each other. Analysts think that the coming week can be the most explosive week for Bitcoin.
The Importance of Upcoming Week
The upcoming week holds some really important events including the release of the Producer Price Index (PPI) and Consumer Price Index (CPI) in the United States, the Ripple v. SEC case, the FED interest rate decision, and more. So, the coming week can play a crucial role in setting the price direction.
The U.S. inflation data for May is going to be released on Tuesday which may directly affect the FED’s interest rate decision. Thus, Tuesday is expected to be an important day of the week. The financial markets will experience a positive response if inflation continues to decline.
FED’s latest interest rate decision will be announced on Wednesday. The crypto market may experience volatility following the Fed Chairman’s statements during the subsequent press conference.
Bitcoin Price Prediction by Mickybull Crypto
Mickybull Crypto, a renowned crypto analyst has recently shared his analysis of Bitcoin by showing the weekly BTC/USD chart. The analyst highlighted the formation of an inverse head-and-shoulders pattern on the weekly chart. This pattern usually indicates a bullish price reversal. The analyst claims that Bitcoin may hit the $40,000 level if the pattern is confirmed.
Other analysts also support this opinion saying that the price can even go beyond $40,000 if BTC breaks out of the $30,000 resistance. Some crypto analysts are even predicting a bull run to $100,000 by the end of 2025. It shows that the analysts are optimistic about the long-term prospects of Bitcoin no matter how disappointing the situation is.
Bitcoin Price Overview by Google Bard
A group of analysts asked Google’s generative AI platform about the factors that may drive Bitcoin’s price to $100,000. While providing details about the key drivers, Bard cautioned that it’s not guaranteed that Bitcoin will reach $100,000.
The tool mentioned that the mass adoption of Bitcoin can help with pushing its price up. Similarly, the price may significantly increase if institutional investors like hedge funds and pension funds start investing in it. The government’s adoption of Bitcoin as a legal tender can further enhance the legitimacy of the asset and it will ultimately boost the investor’s confidence.
Lastly, positive news can boost momentum by creating excitement around digital assets. However, the tool also mentioned that the asset is currently struggling to recover from the bear market that began last year. Similarly, most investors have a bearish sentiment about the investment. Moreover, the regulatory actions of the Securities and Exchange Commission can also negatively impact the price.
Significance of $25,000 Support Level
Despite strict regulatory actions against major crypto exchanges, the crypto market remains resilient. Bitcoin is consistently maintaining a strong position even with these tough challenges. The investors are closely monitoring the regulatory developments, stablecoin outflow trends, and interest rates.
The $25,000 is crucial support for Bitcoin. Bitcoin may retest this level following the upcoming FOMC meeting. If the price is sustained above this level, it may support a bullish momentum. But if the price breaks below this support level, it may turn out to be strong resistance to future price development.
Bitcoin’s Sideways Movement can be Beneficial for Altcoins
Altcoins have experienced huge selling pressure following the announcement of lawsuits by the Securities and Exchange Commission. In recent lawsuits, the SEC has labeled 23 cryptocurrencies as securities. However, Ethereum and some other leading altcoins have held up strong during this market turmoil.
It shows that institutional investors are still holding their positions and only a small group of people are panic selling. Ethereum’s dominance has also climbed to 20% during this time. The analysts believe that panic selling may be witnessed in Bitcoin if it breaks below $25,250. The price may potentially hit $20,000 due to selling pressure.
However, if the price doesn’t break this support, altcoins like ETH, LDO, XRP, and RNDR may break out of the strong resistance levels. And it may initiate another bull run in the altcoins.
Bitcoin Weekly Technical Analysis
Bitcoin is still following the parallel channel that was highlighted two weeks. But it’s now becoming ineffective because it’s getting bigger than the average price movement. So, the price may not get to $15,000 even after breaking below this pattern. However, the users may expect a bullish momentum in case of a strong breakout.
It’s also worth noting that Bitcoin is in the process of making an inverse head-and-shoulders pattern on the daily chart. So, it may also support a bullish momentum if the pattern is confirmed.
the upcoming week holds crucial events and catalysts that may impact Bitcoin’s price. Analysts anticipate potential volatility based on economic indicators, the Ripple v. SEC case, and the FED interest rate decision. The formation of an inverse head-and-shoulders pattern on the charts suggests a bullish price reversal, with a target of $40,000 if confirmed.
While regulatory actions and market challenges persist, there remains optimism about Bitcoin’s long-term prospects, with the potential for altcoins to benefit from Bitcoin’s sideways movement. Overall, the week ahead will be closely watched for determining Bitcoin’s price direction.
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