- Bitcoin has started the week in a precarious position, just short of a major resistance level
- The four-week run has seen it put on almost $9,000 since the start of the year
- With lots of data on the U.S. economy coming this week, it will be a dicey time
Bitcoin has started an important week in what looks to be a precarious position, having failed to clear a key level of resistance. With a Federal Open Market Committee (FOMC) meeting coming up this week and having experienced no proper pullbacks since the uptrend started on January 1, everything points to a red week after so many green, unless it can reach the resistance level at $24,325 and turn it into support.
Has Bitcoin Run Out of Steam?
Looking at the weekly chart, the position for Bitcoin could not be clearer:
Having enjoyed a glorious four-week uptrend, the first since July 2021, Bitcoin appears to have potentially run out of steam some $600 short of this resistance level that will play such a key part in Bitcoin’s long term recovery.
The facts are starkly simple – if it can cross this line and turn it into support then a run to $32,000 isn’t out of the question, but if it can’t then it will almost certainly fall back to the next support underneath the current level, which on they weekly chart looks to be around $21,800.
FOMC Meeting and More
What complicates matters is that we can expect a slew of information from the U.S. government this month on the state of the U.S. economy, including an FOMC meeting where the interest rate will be addressed and may be increased. Typically these numbers have an impact on Bitcoin, and we won’t get a clear idea of its short term destiny until these events have come and gone.
With the dramatic jump from $15,500 up to $24,000 however, the odds of a pullback are more probable than direct continuation.