Bitcoin at $80K Zone: Weekly Crypto-FX Correlation & Risk Sentiment Preview

Quick overview

Bitcoin has failed to stop its losses and is still showing negative performance. At the time we are writing this article, Bitcoin is trading at $78,043.36 and showing losses of 3.16 percent. Yesterday, it was showing positive performance, and it also touched the target of $82,000, but after that, it dropped by almost 3 percent to 78,000 level, and since then, it has been trading around this level.

At the moment, the overall feeling in the market is slightly cautious but despite that the traders are still looking hopeful about Bitcoin’s performance in the coming days and they expect that Bitcoin will go up in the coming days because it is getting strong support from big institutions.

US Bitcoin ETF Mixed Signals

If we talk about US spot Bitcoin ETFs, they have shown mixed results. For example, on May 4 a 532 million dollars inflow was recorded, which is being considered a positive thing for Bitcoin.

But on the other hand, on the 13th of May, a record single-day outflow was also recorded, which was $635 million. This shows a mixed environment going on in the market, which prevents traders from taking big risks, and this is the reason why Bitcoin is trading in a consolidating phase.

Clarity Act Brings Market Hope

On the other side of the story, some positive news is also going on such as a new bill which is known as the Clarity Act has reached the Senate. It is very important for traders because this bill will bring very clear rules for the crypto market and it will bring large companies and big investors into this market and it will build trust in this market.

Bitcoin Technical Analysis

Bitcoin is currently priced at $77,903, marking a slight decline of $159 (-0.20%) on the 2H timeframe. This pullback follows the recent red candles pushing the price down after it tested the upper boundary of the channel at $82,029, and now the pair is bouncing against the sharp black ascending trendline (started from the lower lows at $75,645 in early May) and the blue moving average dynamic support at $77,705 to $78,051. We can also observe the red moving average acting as an overhead resistance around $79,532 to $79,869, as the price continues to make clean higher lows within the parallel uptrend channel.

Notice the lack of triangle pattern or bearish engulfing candlestick on the right. The last impulsive up-leg pushed the price significantly above the prior resistance to initiate the latest price action that looks like a flag consolidation, that correctly defended the 0.382 Fibonacci retracement area. Finally, the indicator at the bottom (which is similar to RSI) is currently at oversold condition at levels 32 to 40, as it’s exhibiting strong positive divergence with the price while it retraced, proving that the bearish momentum is getting less intense and has space to go before reaching an overbought condition.

As for the resistance zone, it starts at $79,532 then the next at $80,327 to $81,071, while the immediate area of support starts from $77,705 followed by $76,730. Trade idea: go long from now above $78,100 to capture the target range between $79,532 to $80,327 and place the stop below $77,700.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

XRP Price Prediction: $1.41 Bullish Flag After CLARITY Act 15-9 Victory — Five Steps to $3–$5 Remain

5 hs ago

Save

XRP Price Prediction: Surges as CLARITY Act Passes Senate Committee – $1.55 Breakout Next?

1 day ago

Save

FIG Surges 7% on Figma's Comeback Code: 46% Growth, 139% Retention, and the AI Bet Paying Off

1 day ago

Save