"Expect volatility." What will happen to Bitcoin in the coming week?

Analyst told S4B what will happen to Bitcoin during the week from April 1 to 7.

The expert analyzed the market situation and talked about how it could change in the upcoming week.

On Sunday, March 31, Bitcoin (BTC) was trading at $70,000, with its price rising by about 8% over the past week. The specialist analyzed the market situation and assessed the prospects for Bitcoin's price movement over the next seven days.

"The technical picture favors buyers."
Financial analyst at BitRiver

The week from March 25 to 31 was relatively calm. The following key factors influenced the cryptocurrency market: the dynamics of the US dollar, stock indices and futures on them, inflation data in the US measured by the PCE index, and the speech of Federal Reserve Chairman Jerome Powell. News of accusations against the KuCoin exchange raised concerns and led to a mass withdrawal of funds from the platform, but did not have a strong impact on the market.

On March 25, Bitcoin demonstrated a confident growth of 3.97% and closed at $69,880 per coin. This rise occurred after bulls managed to break through the important resistance level at $65,430 on Sunday, signaling a breakthrough in the local downtrend.

On March 26, the BTC/USDT pair rose by 0.15% to $69,988, reaching an intraday high of $71,561. Buyers took a pause, retreating to $69,280.

On March 27, increased volatility was observed. The BTC/USDT pair decreased by 0.74% to $69,469 after an unsuccessful attempt to break above $71,769. The price dropped by 5% to $68,359 but did not go below this level.

On March 28, the BTC/USDT pair rose by 1.89% to $70,780. The price touched $71,500 three times but failed to move higher due to a drop in S&P 500 futures before the close of trading.

On March 29, trading in the BTC/USDT pair ended with a decrease of 1.31% to $69,850. Despite attempts by buyers to develop an upward trend, they failed to hold their positions. During the US session, the price of Bitcoin dropped to $69,000.

Since on this day, US and European exchanges were closed due to Easter holidays, the cryptocurrency market lacked benchmarks provided by traditional markets. Price pressure could have been exerted by published inflation data in the US, as well as remarks by Federal Reserve Chairman Jerome Powell.

By the time of the closing of trading, the price of Bitcoin had recovered to $69,850, remaining within a four-day sideways trend with a range of $68,350 to $71,550 (the week's maximum was $71,769).

According to published data, inflation in the US, measured by changes in the Personal Consumption Expenditures (PCE) price index, rose to 2.5% on an annual basis in February. The core PCE price index also showed growth. These data met expectations but apparently exerted some pressure on the market. Since traditional exchanges were not operating, Bitcoin predominantly reacted.

Rising inflation and Jerome Powell's words about the need to keep rates high may mean that the Federal Reserve will cautiously approach rate changes. Market conditions and new employment data will be key factors for the Fed's future decisions during the period from April 1 to 7.

The upcoming week will be filled with the publication of important macroeconomic indicators, so increased volatility can be expected in all markets. On April 3, Jerome Powell will speak again.

Currently, Bitcoin is trading sideways within a range of about 5% or $3,450. The technical picture remains in favor of buyers. The only potential negative factor could be the strengthening of the dollar after the long weekend. If markets open calmly on Monday, an exit from the sideways range upwards is expected. Possible technical resistance levels could be $72,650 and $73,800. According to BitRiver's estimates, sellers' targets are $65,800 and $60,800.

It is also important to note that the issuers of nine new spot Bitcoin ETFs launched on January 11 currently hold more than 500,000 BTC worth $35.2 billion at the current exchange rate. BlackRock holds the first place in terms of the number of coins in storage with approximately 250,000 BTC, followed by Fidelity with about 150,000 BTC, and Bitwise closes the top three with 50,000 BTC. Ahead of the upcoming halving, demand for Bitcoin remains high, so support from institutional investors will remain for a long time.