Bitcoin (BTC) is starting another week in a dangerous place as global macroeconomic volatility dictates sentiment.
After hitting a weekly close just above $19,000, the biggest cryptocurrency still lacks direction as nerves mount over the resilience of the global financial system.
The past week has been a testing time for investors in risky assets, given the dismal economic data from the US and Europe.
Thus, the eurozone creates a backdrop for the latest fears of market participants who are watching the financial recovery of large banks in question.
As the war in Ukraine escalates as winter approaches, it is perhaps understandable that hardly anyone is optimistic – what is the potential impact on bitcoin and cryptocurrencies?
BTC/USD is still below the all-time highs of the previous halving cycle and is heading inward compared to the 2018 bear market, also signaling a new multi-year low.
Cointelegraph takes a look at five BTC price drivers to watch out for in the coming days, with Bitcoin still below $20,000.
Spot Price Avoids Multi-Year Weekly Closing Low
Despite the downsides, Bitcoin’s weekly close could have been worse – according to data from Cointelegraph Markets Pro and TradingView, the biggest cryptocurrency managed to add a modest $250 to last week’s close.
BTC/USD weekly candlestick chart (bitstamp). Source: Trading View
However, the previous close was the lowest since November 2020 on the weekly chart and thus traders still fear that the worst is yet to come.
“The bears were in full swing last night during Asia while the bulls failed to give us good exits to work with,” prominent crypto trader Tony wrote in part of a Twitter update that day.
Others agreed with the conclusion that BTC/USD is in a low volatility zone, which needs a breakout sooner or later. It remains only to decide on the direction.
“The next big step has been taken,” Credible Crypto responded:
“Typically before these big moves and after giving up, we see a period of low volatility before the next big move starts.”
As Cointelegraph reported, the weekend was expected to bring higher volatility, as evidenced by the Bollinger Bands data. This came along with an increase in volume, which is a key component in sustaining a potential move.
“The weekly BTC chart shows a significant increase in volume since the beginning of the third quarter + a weekly bullish divergence on one of the most reliable timeframes,” Doctor Profit trading account colleague concluded:
“Bitcoin price increase is only a matter of time.”
Not everyone saw the imminent return. Looking ahead to the weekend, crypto trader Il Capo has named a $14,000 to $16,000 range as a long-term target.
Detailed BTC/USD chart. Source: Il Capo of Crypto/Twitter
“If this is a real bottom…Bitcoin should be trading around 25k-26k now,” the Profit Blue trading account claimed, showing a chart of the double bottom structure likely to develop on the two-day chart.
Credit Suisse is nervous when the strength of the dollar has not gone anywhere
In addition to cryptocurrencies, the fate of major global banks, in particular Credit Suisse and Deutsche Bank, is of interest.
Liquidity concerns have led to emergency public guarantees from the former chief executive as executives are said to spend the weekend reassuring top investors.
The collapse of banks is a sore point for underwater farmers – it was government bailouts of creditors in 2008 that led to the creation of Bitcoin.
As history increasingly wants to intervene after nearly fifteen years, the Credit Suisse saga will not go unnoticed.
We can’t see what’s inside CeFi Credit Suisse, just like we can’t see inside CeFi Celsius, 3AC and what’s inside CeFi Celsius, 3AC and what’s inside CeFi Credit Suisse,” Mark Jeffrey, founder of CeFi, tweeted. on the same day. , comparing the situation to the collapse of the crypto fund earlier this year. until”.
According to Samson Moe, CEO of bitcoin startup JAN3, the current situation could still give bitcoin time to shine in a crisis rather than remain tied to other risky assets.
“The price of bitcoin has already bottomed out well below 200 WMA,” he said, citing the long-lost 200-week moving average as support for the bear market.
“We have been infected with UST/3AC and the leverage is already leaking. BTC is sold too often as a hedge. Even if Credit Suisse/Deutsche Bank collapses and this leads to a financial crisis, we don’t see anything below.”
However, with the volatility already prevalent in the global economy and growing geopolitical tensions, bitcoin markets are voting with their feet.
