Bitcoin (BTC) kicks off the second week of April in traditional bullish market manner by surpassing $70,000.
The primary cryptocurrency, after gradually increasing over the weekend, is maximizing its gains to approach closer to its all-time peak.
Prior to the opening of Wall Street, there is already noticeable anticipation for further upward movement in trading spheres – will the price momentum of BTC bring results?
There is definitely a feeling of familiarity in the cryptocurrency space this week – a consequence of the built-up excitement following a series of corrective actions in recent weeks.
Volatility, in both the upward and downward directions, is likely to persist. With Bitcoin’s upcoming block subsidy halving just 10 days away, miners are in the final phases of getting ready for a 50% reduction in block rewards overnight.
Hence, keeping an eye on network fundamentals is crucial moving forward, especially with difficulty levels expected to reach new record highs this week.
In other news, the macroeconomic sentiment remains reserved as markets adjust the likelihood of a rapid interest rate reduction from the United States Federal Reserve.
Cointelegraph analyzes these matters and more in its weekly overview of key BTC price themes to monitor in the upcoming days.
BTC price reaches $72,000 at the beginning of the week
Bitcoin is not hesitating in trying to reclaim the remaining lost ground below the all-time highs this week.
The weekly closing price, around $69,000, followed an atypical weekend during which BTC/USD steadily climbed despite the absence of institutional players.
However, the real surge happened afterwards, with the Asian trading session experiencing a sudden surge in upward volatility, reaching a peak of $72,573 on Bitstamp at the time of writing.
Consequently, Bitcoin was already up 2.5% for the day, as per data from Cointelegraph Markets Pro and TradingView.
BTC/USD 1-day chart. Source: TradingView
“There is significant demand from spot BTC buyers,” financial analyst Tedtalksmacro summarized in a post on X.
An associated graph revealed that spot buyers were leading derivatives in the upward movement.
Bitcoin cumulative volume delta (CVD) data. Source: Ted
These spot flows are essential for several well-known market analysts when it comes to sustaining bullish momentum.
For the renowned trader Skew, the key to reaching $70,000 rested on sustained interest.
“Volatility remains moderate within the higher time frame scenario, which means price swings of $2K can be anticipated,” he remarked on a chart displaying the Bollinger Bands volatility indicator.
“As we edge closer to the band squeeze zone if price compression occurs by late Monday, we still need to witness a rise in buying volume & spot flows this week to maintain levels above $70K, at least in the short term.”BTC/USD chart with Bollinger Bands. Source: Skew
Others on that day foresaw the potential for a fresh pullback.
According to fellow trader Crypto Ed, a “clear” pennant structure currently present on daily timeframes might lead to a dip back to $68,000 before surging to new highs.
“If we do observe such a retracement and record another higher low, it might be an opportune moment to prepare for a move towards $80,000,” he communicated to X followers.
BTC/USD chart with $80,000 target. Source: Crypto Ed
Furthermore, attention was drawn towards two nearby “gaps” in the CME Group’s Bitcoin futures market, both appearing as the price fluctuated over weekends, currently situated around $64,000 and $68,500.
“These gaps tend to be quasi-self-fulfilling prophecies if a sufficient number of people observe and act upon them, encouraging the price to rectify the gaps,” trader Daan Crypto Trades cautioned alongside an illustrative graph.
“Typically, as the price moves farther away and people lose interest, the gap diminishes in significance.”BTC/USD chart with CME gaps. Source: Daan Crypto Trades
CPI, PPI scheduled as important inflation indicators
Another significant week of U.S. macroeconomic data is on the horizon, potentially reinforcing the Fed’s stance on rate adjustments.
While Bitcoin enthusiasts are primarily focused on the halving, the Consumer Price Index (CPI) and Producer Price Index (PPI) figures for March are set to be released in the upcoming days.
The inflation narrative in the U.S. is currently in contrast with signals from Europe.
In recent statements, Fed Chair Jerome Powell mentioned that officials are comfortable with a data-oriented approach to rate changes, with inflation gradually decreasing and the economy coping with the effects of tighter policies.
Consequently, market expectations have shifted towards potential rate adjustments towards the end of the year.
“This week is centered around inflation data and the future moves of the Fed,” trading resource The Kobeissi Letter detailed in a section of its weekly report on X.
Latest forecasts from CME Group’s FedWatch Tool indicate the likelihood of a 0.25% cut either in June or July to be below 50%.
Fed target rate probabilities for July FOMC meeting. Source: CME Group
On the other hand, in Europe and the United Kingdom, there is an increasing inclination towards earlier rate cuts.
“Although we haven’t reached the stage of implementing rate cuts yet, progress is heading in the right direction,” stated Andrew Bailey, Governor of the Bank of England, in March.
Bitcoin miners get ready for potential cost instability
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