Bitcoin: a week of adjustments

During the previous week a negative investor sentiment prevailed on the crypto market, as a combination of several factors. The week started with a market frenzy for Chinese stocks, after the China's Government announced extensive measures in order to support its economic growth in the future period. A portion of funds from the crypto market was transferred to China's stocks and related ETFs. On the other side were US macro data, which showed higher resilience of the US economy than previously expected. A soft-landing was the word heavily used among analysts, which supported the US stock market. Portions of funds from the crypto market ended again in the US stock market. The BTC started the previous week with a negative sentiment. Previously, the coin was testing levels around the 63K resistance line, however, it soon reverted back toward the 60K support line. The dip-buyers helped BTC to return back toward the 62K as of the end of the week, however, BTC continues to lack strength.

The RSI was pushed down to the level of 48 during the week, however, the indicator ended the week around the level of 50. Moving averages of 50 and 200 days are currently moving as two parallel lines, but still without an indication that the potential cross might occur anytime soon.

At this point on charts, there are almost equal probabilities for BTCs to move toward the higher and lower grounds. On the downside, a potential for the level of 58K is indicated as a historically major support line, after the 60K is breached to the downside. Still, on the opposite side, there is also indication of a potential for higher grounds, where the 63K will be the first stop. It is unclear where the BTC will decide to go in a week ahead. In case that the 60K is breached to the downside, then the 58K will be the next stop, from where the final reversal starts. In case that BTC looks at the higher grounds, then the 63K will be the first stop for the BTCs return to the $ 65K levels.