The main focus is the relationship between the price and the equity markets. Bitcoin has a strong positive correlation with the risk-on factors, and it has been moving higher as the equity markets scored more gains.
The big question is if it continues to trade higher as cracks have started to show in the risk-on rally. Traders may back away from supporting riskier assets this week, and the comments from the Fed officials have indicated that the Fed doesn’t seem to be in a rush to end its ultra-hawkish monetary policy.
Traders are focused on two price levels. Firstly, it is a resistance of 25K followed by a resistance of 30K. Secondly, the support is at a 20K price level. If we see the price breaking above their price points, only then are we likely to see another trend forming.
Cryptocurrency Opinion & Analysis