"Market volatility." What will happen to bitcoin in the coming week gave a bitcoin price forecast for the week from May 1 to May 7
The specialist analyzed the market situation and estimated the prospects of the Bitcoin exchange rate for the next seven days.
"Uncertainty and volatility persist."
BitRiver financial analyst
Over the past week, the cryptocurrency and financial markets experienced significant price fluctuations. They were related to news about the U.S. debt ceiling, corporate reporting, as well as statements by Republicans to raise the debt ceiling. As a result, markets fluctuated, which was reflected in volatile prices for Bitcoin and other risky assets.
Nevertheless, bitcoin showed some stability in this market, rising 6.16% from the beginning of the week to $29,291 by the end of the week. However, there were uneven movements in its price throughout the week, reaching a high of $30,036 and a low of $26,942.
The first half of the week saw the risk of a technical default on the U.S. government debt and the announcement by U.S. Treasury Secretary Janet Yellen that the debt ceiling should be lifted. In connection with this, the cost of insurance against the default of the U.S. government has recently grown to a new high, and the U.S. national debt exceeded $31.7 trillion. Such factors led investors to fear that the world's largest economy can not meet its financial obligations.
However, later there was positive news - the Republicans of the US House of Representatives proposed to limit the rights of the popular Securities and Exchange Commission (SEC) regarding stablecoins. This proposal affects only stablecoins to be used for payments and could give a new impetus to the market.
During trading in the European session on April 26, the pair BTC/USDt rose to the value of $30,036 (+11%) but fell to $27,235 (-9.33%) in the American session. The fall in price during the U.S. session may have triggered the U.S. stock indices, while bank stocks were under pressure because of the further decrease of First Republic Bank's capitalization, which was 54% for two days to the value of $5.69. Such a drop exacerbated investor fears of a possible banking crisis and increased the likelihood of bad reports from other major banks.
On April 27, the Bitcoin price recovered to $29,480 (+8%). In this regard, the market may have been affected by the news that the US Congress passed a bill proposed by the Republicans to raise the national debt ceiling by $1.5 trillion while reducing spending. However, it should be noted that there is still uncertainty and volatility in the cryptocurrency market. On April 28, bitcoin prices continued to fluctuate between $28,829 and $30,457, showing volatility in the market.
Market participants are waiting for the results of the US Federal Reserve meeting and the press conference of Fed Chairman Jerome Powell. They could be key factors in determining the price direction of Bitcoin and other risky assets in May.
Overall, sentiment in the crypto market is positive for Bitcoin, especially after the U.S. Congress passed a bill to raise the national debt ceiling and cut spending. The S&P500 closed the week in the plus, while the dollar index is slightly down.
Bitcoin is trading at $29,390. BitRiver estimates the May trading price range will be $26500 to $31000. My inclination is that the price will remain in that range until the U.S. Federal Reserve meeting and exit after June 1, 2023. If suddenly the news background is such that buyers can pass the level of $31 thousand earlier, there will be $35 thousand on the horizon.
