Bitcoin: potential for upside?

Previous week was traded under investors' sentiment over the first ETH ETF which started trading in the US after the SEC`s approval, while on the macro side there were posted PCE data for June, showing that the inflation is further slowing down in the US. The BTC gained on investors expectations that the potential Fed's rate cut in September, and probably another one during the course of the year, would imply investors' search for an asset with higher risks and returns. Anyway, it was a little bit of a bumpy week for BTC, which started the week around 68.4K, went down to the level of $63.756 at one moment, in order to return back to the levels above the 68K short term resistance line. The highest weekly level was reached during Saturday`s trading at the level of $69.579, however, for only a short period of time.

During the week, the RSI went down to the level of 57, in order to revert back toward the level of 63. This shows that the market is still not ready to start a path toward the oversold market side. Moving average of 50 days is quite modestly converging toward the MA200 counterpart, but with a distance between two lines, there is no indication of a potential cross in the coming period.

The week ahead is a FOMC week. The market nervousness will increase and in line with that, the market volatility. BTC is currently clearly testing a resistance line of 68K for its potential toward the upside. There is some indication that the level of 70K might be tested in the coming period, which would mark a peak for this trading cycle. Charts are also indicating that there is a modest potential for a short correction, where levels below that 66K might be tested.