Momentum partially decreased in Bitcoin, which was breathless up to $28,000 levels. While the price is moving sideways around the $28,000 level, we observe that there is no serious movement in altcoins and the whole industry is focused on the next move of BTC.
The indecisive movements in Bitcoin also divided the investors. While investors who missed the rise in BTC or sold early are waiting for the $25,000 and $24,000 levels for the second leg of the rally, some investors think that the current consolidation movement is necessary for the strong crossing of $30,000 and that the upward movement will continue after a while.
Evaluating the recent outlook in Bitcoin, Zate Capital Markets chief investor officer Naeem Aslam told Barrons that BTC has lost its appeal for now and must stay above $30,000 for re-entry.
“We think the upward momentum we’ve been experiencing over the past few weeks has lost its appeal as the price is starting to consolidate before a key psychological resistance level of $30,000.
If BTC is to continue to rise, we should see $30,000 break very easily and stay on top of it.”
Bitcoin and cryptocurrency investors will be following personal consumption expenditures (PCE) data this week, which the Fed considers important when assessing inflation. The data will be released on Friday. If this data comes in below market expectations, it could act as a catalyst to continue the bullish momentum for Bitcoin.
If we see this pre-data correction harden, traders will follow the $26600, $25200 and $24,000 levels.