Bitcoin: holds, but slowing downThere are two major events which marked the previous week. One is related to the Chinese government, which openly noted that they are considering entering into negotiations with the US Administration regarding the ongoing “trade war”, noting the absurdity of the currently imposed tax of 145% on Chinese goods and 125% on goods imported from the US. The other news was related to the US macro data and stronger than expected jobs data posted during the previous week. The market was relieved that the US economy is obviously not entering into recession, which was their worst fear during the previous period. All these, currently positive news supported optimism on financial markets, including the riskier assets, like BTC.
The price of BTC continues to move toward the higher grounds during the week. The highest weekly level was reached on Friday, after the jobs report, at the level of $97,8K. The price eased a bit during the Saturdays trading session, currently trading around $96,2K. The RSI continues to move close to the overbought market side, ending the week around the level of 67. This would be usually a clear signal in technical analysis that the potential reversal is coming, however, at this moment it might happen only if strong demand is put on a halt. Moving averages of 50 and 200 days are currently moving as two parallel lines with an uptrend.
The volatility might continue also during the week ahead. It should be strongly considered that the FOMC meeting is scheduled for May 6-7, where Fed officials will decide on the course on interest rates. What the market is currently expecting to hear from Fed Chair Powell is the Fed's view on the potential negative consequences of imposed trade tariffs. This might have a strong implication on investors sentiment and bring back volatility on the market. At this point, BTC is slowing down. Whether this is only temporary, will be much clearer during the week ahead. As per current charts, the level of $ 98K is the next historically significant resistance line. There is some potential that the BTC might try to test this level in the coming period. However, if the market turns to the down side, then the $95K might be the next level, on its road toward the $92K.
