Bitcoin reached two-week highs but failed to break above $65,000. Traders are watching support levels closely amid mixed signals from the stock market and retail risk appetite.
Bitcoin (BTC) recently saw its highest levels in nearly two weeks at around $63,960 by weekly close. However, bulls needed a push beyond $65,000 for any significant trend change according to recent price analysis. Key support has emerged between $60,400 and $60,900 as noted by trader Killa.
The market's sentiment is currently at monthly highs with crypto exchanges witnessing cooling panic among both retail and whale investors. Total crypto short liquidations reached over $100 million in the 24 hours leading up to this report, indicating some level of investor relief but also caution.
US stock markets are performing well, adding around 1% as Nasdaq 100 futures opened higher after a holiday weekend. This performance contrasts with Bitcoin's recent struggles and raises questions about its ability to mimic equities. Analysts remain optimistic on the broader US outlook despite signs of potential correction in major indices.
Despite these positive stock market trends, traders are still cautious about Bitcoin’s bear-market low being behind us. Long-term trader Roman predicts further macro reversals before a bottom is officially reached. The upcoming Federal Reserve meeting minutes and Purchasing Managers Index (PMI) numbers will provide crucial insights for the market this week.
Retail risk appetite appears to be at record levels, according to trading resource The Kobeissi Letter. This could potentially support Bitcoin’s price as retail investors seek higher-risk assets despite recent crypto exodus trends. However, a potential stock correction is not entirely out of the question and will keep traders on edge.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.