Bitcoin
and other cryptocurrencies were rising Monday after a weekend of choppy trading, but digital assets remain below key levels heading into a week that could be light on catalysts.
The price of Bitcoin has risen 2% over the past 24 hours, settling around $27,400 after the largest digital asset fell below $26,500 last Friday and recovered gradually over the weekend. Bitcoin remains well below the psychologically important $30,000 level, above which it has failed to consolidate any gains after crossing that mark last month for the first time since June 2022.
“Bitcoin proved interesting for sellers as it touched the 200-week average, passing close to $26,000 last Friday. By defending this key average, the bulls have convinced the market of the sustainability of the long-term bullish trend,” said Alex Kuptsikevich, an analyst at broker FxPro. “On Monday, investors switched to active buying and pushed the price to $27,500. Cautious buyers will likely want to see a $28,000 to $28,500 takedown as confirmation of the break of last month’s downtrend.”
But crypto traders face a week that may be light on catalysts, which could make it difficult for a narrative to emerge in support of a continued rise in Bitcoin prices.
Cryptos continue to be sensitive to macroeconomic forces, swinging alongside the
Dow Jones Industrial Average
and
S&P 500
in response to economic data—especially data that could shape the future of Federal Reserve monetary policy. The Fed’s campaign of inflation-fighting interest-rate hikes over the past year has been a key headwind for digital assets, but Bitcoin’s rebound in 2023 has come amid increasing expectations that the central bank will soon become more accommodative.
Last week brought a wave of inflation data that moved cryptos and stocks, but the calendar is much lighter in the coming days. Monday sees the release of the Empire State manufacturing index before Tuesday brings U.S. retail sales data—but otherwise the focus among investors remains on the looming U.S. debt ceiling.
Beyond Bitcoin,
Ether
—the second-largest crypto—gained 1.5% to $1,830. Smaller cryptos or altcoins were also buoyant, with
Cardano
climbing 1% and
Polygon
up 2%. Memecoins exhibited more of the same, with
Dogecoin
and
Shiba Inu
advancing 1%.
Write to Jack Denton at jack.denton@barrons.com
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