Bitcoin (BTC) is trading at $half dozen,670 representing a 1% proceeds in the last 24 hours just a gain of 14.66% off the weekly open at $v,815. Looking at operation relative to its peers, Ether (ETH) and XRP both underperformed versus Bitcoin last week against the U.S. dollar and have continued to do and so.

Equally a outcome, Bitcoin say-so is upwardly 1.5% and pushing to repossess 68% as there has been a general flight to safe in Bitcoin, although dominance is still down some 4% for the highs of the yr at effectually 70%.

Cryptocurrency market 7-day view

Cryptocurrency market place vii-day view. Source: Coin360

3-day Bitcoin chart

BTCUSD 3 Day chart

BTCUSD three Solar day chart. Source: Tradingview

Bitcoin is trading up confronting what is a fundamental decision point at $half dozen.8K. This is previous support now acting as resistance and the top of a high volume node which is dissected past a diagonal resistance trend line, which dates back to mid-2019.

Reclaiming $half-dozen.5K has been a sign of strength by the bulls who catapulted Bitcoin higher off the 200-week moving average in the mid $5Ks. Looking at the big picture, a meaningful pause out of the $half dozen.8K resistance would meet Bitcoin offset set on $seven,200 — the fifty% retracement of the 2022 lows to highs — but above that stands formidable resistance.

"Death cross" looms

There is a so-called "decease cross" taking identify today overhead at $8300 where the 50-day moving average is crossing below the 200-day moving boilerplate, which is a crowded cluster of other erstwhile support levels, namely the 100-twenty-four hour period and the 20-week moving averages. Alongside this is the 61.8% Fibonacci retracement level at $8K and yearly pin at $8,100 and a high volume node, implying that information technology volition be a real challenge for the bulls to suspension across this point.

BTCUSD 3 Day chart

BTCUSD 3 Day chart. Source: Tradingview

The 3-day Bitcoin chart helps illustrate the persistently high volume being transacted by the bulls, albeit declining in its momentum, the volume at the 200-calendar week moving average has resulted in the OBV printing the biggest surge to the upside in recent times and is indicative of existent back up around the mid $5Ks.

4-hour Bitcoin Nautical chart

BTCUSD 4-hour chart

BTCUSD 4-hour chart. Source: Tradingview

The 4-hour Bitcoin nautical chart shows a strong trend pressing Bitcoin upwardly against the $6.8K resistance level with the construction arguably beingness in a rising wedge pattern, which is typically surly when accompanied by decreasing volume as is apparent here. The RSI is too showing bearish departure which adds to the bearish instance.

If the bulls are unable to regain the $6,800 level, the 200-calendar week moving average is lying below at effectually $v,500 on a loftier book node, which was previously front run in the final attempt to break $6,800. Should the bulls find their anxiety again, diagonal support will be constitute at $half-dozen,250.

Typically in Bitcoin'due south history, we have seen a rally into the decease crosses and depreciation into a gilt cross.  If the bulls tin break the $six,800 level, there is a loftier probability of selling pressure effectually $8K due to the confluence of previously lost support now likely to act every bit resistance.

Bitcoin market sentiment

The Crypto fright and Greed alphabetize, which is a metric deriving the sentiment in the marketplace from various inputs, shows unsurprisingly that the market remains in extreme fear meaning that there is likely to exist more than market volatility on the style.

The final time that fear was at these lows for any corporeality of time was in December 2022 at the lows of the 2022 comport market and interestingly besides at the 200-week moving boilerplate. The 200-week moving average was ultimately a magnet for a retest although price never quite fabricated it and was front ran, which was a good indicator the bottom was in. Information technology is possible we are setting up for the same scenario again here.

Bitcoin Fear And Greed Index

Bitcoin Fearfulness And Greed Index Source: Fright and Greed Index

The futures market also gives an insight into what the expectation is for the price of Bitcoin with contracts catastrophe in June currently trading in backwardation with a discount from spot prices of around 1%. Even so, there is an expectation of some recovery and higher valuation for the September contract shut.

Bitcoin Futures Prices

Bitcoin Futures Prices Source: Skew

Perpetual swap funding also remains negative in the market, meaning that in order to accomplish a constructed cash position on a perpetual swap exchange, market place participants are effectively paying an interest rate.

Historically, there has been an inverse human relationship betwixt negative funding and propensity for the market to turn bullish so this may indicate that eventually those paying to be in a curt position for longer periods while price remains flat above the 200 WMA will naturally be squeezed out.

BTCUSD 15 Minute BItmex Funding chart

BTCUSD 15 Minute BItmex Funding chart. Source: Tradingview

Looking frontward

With global uncertainty reaching all-fourth dimension highs now and with the commitment from central banks to provide "unlimited" liquidity in the form of debt, Bitcoin finds itself at ground zero in terms of its purpose for its creation.

While global assets are depreciating in real terms, Bitcoin'due south inflationary supply is due to be cut in half in May and once the dust settles on the global markets, it may be that there is a flow of idle dollars into the Bitcoin market.

This macroeconomic backdrop could prove to be very beneficial to the cost of Bitcoin. The fundamental challenge is to maintain the 200-week moving boilerplate and miner's revenue above production price, which is shortly the example.

Assuming the 200-week moving average will be retained and $8K will be the resistance expected, Bitcoin may find itself trading sideways betwixt the $6K and $8K for some time before a decisive motility. The backdrop couldn't be a better time to talk about the halving and in a few weeks that will present itself as being an imminent upshot that could be the catalyst to take Bitcoin dorsum higher up resistance; time will tell with 49 days remaining until Bitcoin reward halving.