COINTIKA.COM - Bitcoin is currently in a correction phase, with its price dropping from 102,000 to around 101,600, placing it below a crucial support area. This decline occurs amid the anticipation of significant global economic data releases throughout the week, which are expected to have a substantial impact on market movements, not just for Bitcoin but also for other assets. Investors and market participants are now closely monitoring price developments and reactions to upcoming economic reports.
Despite Bitcoin showing a downward trend, analysts advise caution. "Analysts suggest not rushing to conclude a bearish trend until daily and weekly timeframes confirm a close below the critical support level," a key quote from the morning analysis in the video states. This warning highlights the volatility of the crypto market and the importance of technical confirmation before making investment decisions.
This week will be filled with important economic data that could trigger market volatility. On Monday, the Global Manufacturing PMI from the United States will be released. This will be followed on Tuesday by the announcement of consumer confidence data along with a speech by Federal Reserve Chairman Jerome Powell. Powell is scheduled to speak again on Wednesday, coinciding with the release of crude oil inventory data. Peak attention will be on Thursday with jobless claims data, core PCE prices, and durable goods orders, and on Friday with Tokyo Core CPI inflation data from Japan and EU consumer confidence data. The PCE inflation data, in particular, is predicted to have a major impact.
In addition to macro economic data, several specific developments in the crypto world are also in the spotlight. Gold ETFs reportedly continue to receive accumulations, while Texas became the third state to approve Bitcoin as a strategic reserve. On the other hand, Norway has temporarily banned Bitcoin mining during autumn to conserve energy. The market was also marked by technical incidents on CoinMarketCap and malware issues with the Polihedra (ZK/J) token, which caused significant price drops. Market sentiment towards Bitcoin Spot and Ethereum Spot ETFs shows a negative trend with outflows occurring, although Fed AI (ASI token) plans a buyback of approximately $50 million to boost investor confidence in the project. In its technical analysis, Bitcoin shows the potential to continue a downtrend if the daily close below 102,500 is confirmed, with a potential support target around 89,000. Smart money volume and trading volume appear to be decreasing, while Bitcoin dominance is increasing, negatively impacting altcoins.
