Bitcoin price flatlines near $27K — What can trigger the next move?

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Bitcoin (BTC) has everyone’s attention when it comes to its price trajectory. Where are we going next?

BTC Price Falls 10% After Bad Week

After a week of BTC/USD falling 10%, sentiment has reset and traders are eyeing critical support levels close to $25,000.

At the same time, the consensus is far from unanimous on the health of the market, and some believe the next phase of the rally is just around the corner.

With macro markets gearing up for a new period of critical data and a move from the US Federal Reserve, a catalyst for volatility awaits in the wings and Bitcoin could be restless for the long haul. I have.

Cointelegraph examines upcoming scenarios that could cause BTC/USD to break short-term sideways trading patterns.

Will the Federal Reserve Call the Market Bluff?

All may be quiet so far when it comes to macroeconomic triggers this week, but that is about to change.

From April 27th onwards, new data emerges from the US that could cause a spike in volatility in the currently lackluster risk assets.

US GDP and jobless claims precede the March printing of the Personal Consumption Expenditure (PCE) Index.

Timing is important this month. After a week, the Fed will decide how much, if any, to raise the benchmark rate. We believe the market already knows the answer, but this allows surprises to have an even more pronounced impact on sentiment and price action.

According to CME Group FedWatch Toolsas of April 25, there is an 87% chance that the Fed will raise interest rates by 0.25% in early May.

Calm down on US stocks

Bitcoin continues to correlate with US stocks through the end of the month, and non-crypto concerns focus on the index’s failure to hit new highs.

For trading company Mosaic Asset, caution is warranted for several reasons going forward.

“First, the rally since mid-March has led to a sharp rise in bullish sentiment, demonstrating excessive greed among investors. There is a large negative divergence over multiple timeframes,” warned in the latest edition of our regular newsletter.market mosaicwas released on April 23rd.

The attached chart shows a bullish decline across the S&P 500 stocks, indicating a likely changing environment compared to Q1.

“Look at the percentage of stocks trading above the 50-day moving average (MA),” he continued.

“When the S&P was trading at similar levels in early February, nearly 81% of stocks were on a solid uptrend, as indicated by the arrow. The S&P 500 has returned to similar levels, but only 41% of stocks are trending higher.”

Bitcoin Reverses in Liquidity Sweep

The optimism of some Bitcoin market participants is focused on clearing range lows to continue the bull market.

RELATED: ‘Smart Money’ Turns to BTC Bull Run: 5 Things You Need to Know About Bitcoin This Week

Proponents are focusing on the mid-$26,000 zone, which could push Bitcoin’s 200-week moving average above $25,850.

Michael van de Poppe, founder and CEO of trading firm Eight, said: “Bitcoin is moving sideways here again, which means it could be making another low and then rising again. ‘ said. Said Twitter followers on April 25th.

“We anticipate going long in the next few days.”

The attached chart confirms $26,600 as the downside target for the liquidity sweep.

Meanwhile, popular trader Jelle has one voice that believes the worst correction is over.

“The direction of higher timeframes is clear and this is just one of many fixes upwards. Buy blood, sell euphoria. Don’t twist,” part of a Twitter comment read. read.

Jele similarly sees similarities to BTC’s price action in February, but is hopeful of a positive breakout thanks to a bullish divergence in the Relative Strength Index (RSI).

zoom in – we have #bitcoin It sits on a large support cluster while the RSI appears to be building a fork.

Enough for me to be long.

Goal: 30k.
Invalidation of breakdown, addition when divergence is confirmed. pic.twitter.com/F1ATLOdsmO

— Jelle (@CryptoJelleNL) April 24, 2023

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This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.