Bitcoin (BTC) Bitcoin cost closed the week at $7,126 with highs of $7,306 and lows of $7,472. This represented a proceeds of 3.16% and a fifth consecutive week of buying pressure since the sharp drop into $3,000s, which was quickly rejected.

Bitcoin has begun the week with a sell-off, with prices pushing below $7,000, post-obit traditional markets which are besides down around two% on Monday morning.

Ether (ETH), which was up 14% last week with highs reaching $190 and outperforming Bitcoin, is down 2.86% at $175.

EOS, which had a strong four% positive week concluding week, is proving more than resilient than both Bitcoin and Ether and is trading flat at $2.lx.

Bitcoin dominance was down around 1.ii% last week only below 64%, which was mainly equally a result of the gains printed by ETH, EOS, Link and Tezos.

Cryptocurrency market daily performance. Source: Coin 360

Cryptocurrency market daily performance. Source: Money 360

i-week Bitcoin nautical chart

The weekly nautical chart paints a relatively straightforward picture defined by key moving averages.

The 200 and 100-week moving averages had previously been interim as back up and resistance, with the 100 WMA existence repeatedly tested over the previous five weeks defined by higher weekly closes illustrating a lack of selling involvement.

The weekly close marginally above the 100-week moving average (MA) also means that the bulls accept pushed prices 50% of the fashion back to the 2022 highs, with the 20-week MA and 61.viii% retracement being the next obstruction to overcome just beneath $8K if momentum tin can exist maintained.

BTCUSD 1 Week chart. Source: Tradingview

BTCUSD one Calendar week chart. Source: Tradingview

Meanwhile, the Moving Boilerplate Convergence Departure (MACD) indicator is showing that the bulls are close to achieving a bullish cross, which has previously preceded larger bullish moves, with the concluding two instances of occurrence taking the price of Bitcoin across $10K.

Additionally, there is an unconfirmed bullish divergence on the histogram, which supports the case that the bears are no longer in control of the momentum. Also, final week's volume remained relatively high showing that buyers have been in control of cost activity now for five solid weeks.

This buying volume is clearly shown past the On Balance Volume (OBV) indicator, which tracts cumulative volume dictated by toll direction. This particular indicator, therefore, highlights the affect of continued high volume buying, press higher highs and surpassing the 2022 top, which further illustrates that the bulls have been firmly in the driving seat in recent weeks.

BTCUSD 1 Week chart. Source: Tradingview

BTCUSD 1 Week chart. Source: Tradingview

Last week's lows of $6,500 demonstrated that the bulls are interested in buying the $6,500 level in one case more, as they were back in December 2022, which defined the period of accumulation ahead of the fast motion to $10K.

Bitcoin appears to have reclaimed this aggregating range once more and information technology would be expected that $6,500 volition be an area of buying interest should it be retested. Still, the bulls need to accomplish out to the upper $vii,000s to testify strength.

1-day Bitcoin chart

The latter half of concluding week saw Bitcoin break out of both the 50-day MA equally well as the 100-calendar week MA. The 200 and 100-day moving averages are overhead, also shepherding the top of the previous accumulation range that divers Q4 2022.

The vi weeks needed to break higher up this consolidation earlier in the year implies that significant work remains for the bulls in order to pause out and make a move toward $10K.

Early positive signs would come in the form of persistent buying and higher lows, which has been the case. But Bitcoin all the same remains some 12% below a more definitive test of resistance.

BTCUSD 1-day chart. Source: Tradingview

BTCUSD ane-solar day chart. Source: Tradingview

Bump and run reversal

Bitcoin has too arguably broken out of the descending resistance level, which led in from Feb through to the capitulation drop. The chart pattern is similar to the and then-called "Bump and run reversal" design that, in one case cleaved, can atomic number 82 to a toll target existence equally high as that from the first of the lead-in, which would imply a measured target being the 2022 highs of $10K.

This pattern requires a high volume breakout that has arguably been missing and, as such, remains unconfirmed but certainly of interest.

BTCUSD 1-day chart. Source: Tradingview

BTCUSD 1-day chart. Source: Tradingview

High correlation remains

Bitcoin has been strongly correlated to the traditional markets through the 2022 pandemic selloff, with the correlation to the S&P 500 being closer to that of gold, which to date, has been the safety oasis of choice for investors.

The correlation to the Due south&P 500 implies that Bitcoin is still viewed as a risk-on asset and a shakedown of the traditional markets could spell trouble for the price of Bitcoin, with warning shots having already been fired on Monday morning time taking prices beneath $7K.

Bitcoin correlation to traditional markets. Source: Tradingview

Bitcoin correlation to traditional markets. Source: Tradingview

Marketplace sentiment

Overall sentiment regarding the toll of Bitcoin remains low, with the fear and greed index implying that the market more often than not remains in a state of farthermost fright. Funding has also remained either negative or shut to zero with futures contracts besides trading in backwardation beneath spot.

Historically times of farthermost fright have been periods of elevation opportunity to purchase Bitcoin, with the majority being besides fearful to accept advantage of depression prices.

The herd is typically incorrect in the markets and every bit such some contrarian investors volition see this as a signal to buy.

Bitcoin Fear and Greed Index. Source: Alternative.me

Bitcoin Fear and Greed Index. Source: Alternative.me

Looking forrad

In summary, Bitcoin remains plainly tied to the traditional markets, which remain in a similar state of shock and uncertainty.

With the cake advantage halving 3 weeks away, Bitcoin may still be viewed equally being at a discount in comparison to prices traded earlier in the year in anticipation of the halving event. Evidence for this is that the previous accumulation range in a higher place $6,500 appears to be holding in the short term.

As we move into the calendar week, the bulls will be looking at $6,500 equally a ownership opportunity, whereas the bears will be defending $seven,200. A bullish break to the upside would hateful a target of the twenty-week moving average in the upper $7,000s.

The views and opinions expressed hither are solely those of the author and practise not necessarily reflect the views of Cointelegraph. Every investment and trading motion involves gamble. You should bear your own research when making a decision.