Bitcoin is about to close its tenth consecutive weekly red candle. It can be said that it is a dangerous situation for BTC bulls. Crypto analyst Kevin Svenson thinks that as much as there can be a strong rise from these levels, it can also result in liquidation disaster.
Bitcoin traders undecided, need to close the week above $29,450
Data from TradingView showed that BTC/USD is surrounding the May 30 opening level at the time of writing. It’s currently only $300 higher than it was seven days ago. Hours before the weekly candle closes, Bitcoin continued to risk not holding this level. If BTC closes below $29,450 this week, it will set a new record for consecutive “red” weeks. When discussing the potential results, investors had mixed opinions.
What are experts saying about Bitcoin?
Popular Twitter account Crypto Santa noted in their current analysis:
The jury is still out in terms of inflationary trajectory. BTC is likely to achieve a Weekly close above $28.5k, meaning more PA changes for the week ahead.
Bitcoin continued to trade in a narrow range throughout the week. Crypto Santa noted that the US inflation data will be released in the coming days, this is in the form of the consumer price index (CPI) reading for the month of May and could trigger volatility if it is shown that inflation is already working above the high expectations.
Investors turn their eyes to the Fed’s interest rate decision
Jeffrey Rosenberg, senior portfolio manager responsible for systematic multiple strategy at wealth management giant BlackRock, told Bloomberg:
The jury is still out in terms of inflationary trajectory. You really can’t get the Fed off the job of focusing on priority number one—reducing inflation—until you start to see that come through for sure. Until that happens, it will be a very difficult time.
CPI pressure for April came in at 8.3%, combining inflation at levels not seen since the early 1980s.
Bitfinex raises fears of “disposal of liquidation”
With many predicting that Bitcoin will eventually revisit May lows, a group of traders is making a distinct continued its rise. On major exchange Bitfinex, long positions on BTC continued to climb over the weekend, hitting new record highs and confusing analysts. The trend has noticeably accelerated after the trip to $23,800, raising concerns that a liquidation event could add to market vulnerability should BTC/USD reverse downhill.
Commentator Kevin Svenson wrote in part of a reactionary tweet on June 2 that
This will result in a great upswing … or a liquidation disaster.
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