Jerome Powell

Bitcoin

Rekt

Stellar

<p>While the price of Bitcoin has been stagnating for several weeks, technical analysts see the possibility of a bullish reversal. However, the upcoming macroeconomic indicators could significantly influence BTC’s short-term trajectory.</p>
<h2 id="h-is-bitcoin-about-to-break-its-downtrend">Is Bitcoin about to break its downtrend?</h2>
<p>On the 4-hour chart, BTC has formed an inverted head and shoulders pattern, a classic chart pattern suggesting a trend reversal, according to investor Quinten Francois. A close above the neckline of this pattern would validate this <a href="https://www.cointribune.com/en/bitcoin-towards-the-end-of-the-bullish-cycle-fidelity-revises-its-medium-term-forecasts/" target="_blank" rel="noopener noreferrer nofollow">bullish signal</a>.</p>
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<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://www.cointribune.com/app/uploads/2024/05/image-3-1024x576.png" alt="Inverted head and shoulders formation on the 4H BTC chart. Source: Quinten Francois" class="wp-image-692438" width="732" height="411" srcset="https://www.cointribune.com/app/uploads/2024/05/image-3-1024x576.png 1024w, https://www.cointribune.com/app/uploads/2024/05/image-3-300x169.png 300w, https://www.cointribune.com/app/uploads/2024/05/image-3-768x432.png 768w, https://www.cointribune.com/app/uploads/2024/05/image-3-1536x864.png 1536w, https://www.cointribune.com/app/uploads/2024/05/image-3.png 2048w" sizes="(max-width: 732px) 100vw, 732px">
 <figcaption class="wp-element-caption"><em>Inverted head and shoulders formation on the 4H BTC chart. Source: Quinten Francois</em>
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<p>In addition, several technical indicators support the hypothesis of a rebound. The MACD, which measures price momentum, is about to make a bullish crossover. The daily RSI has regained a neutral level at 49, compared to 33 at the beginning of May, indicating a more balanced valuation of BTC.</p>
<p>Analyst Rekt Capital <a href="https://cointelegraph.com/news/bitcoin-56k-bottom-price-chart-btc-breakout" target="_blank" rel="noopener noreferrer nofollow">notes</a> that the current correction has ended at $56,000, likely marking a local bottom. Moreover, Bitcoin has recently left its “danger zone” of distribution. It still faces strong resistance between $63,500 and $63,700, breaking which would liquidate over $516 million of short positions.</p>
<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://www.cointribune.com/app/uploads/2024/05/image-6-1024x686.png" alt="Floor at 56K$, resistance at 63.5-63.7K$. Source: Rekt Capital" class="wp-image-692448" width="711" height="475" srcset="https://www.cointribune.com/app/uploads/2024/05/image-6-1024x686.png 1024w, https://www.cointribune.com/app/uploads/2024/05/image-6-300x201.png 300w, https://www.cointribune.com/app/uploads/2024/05/image-6-1536x1029.png 1536w, https://www.cointribune.com/app/uploads/2024/05/image-6.png 1794w" sizes="(max-width: 711px) 100vw, 711px">
 <figcaption class="wp-element-caption"><em>Source: Rekt Capital</em>
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<h2 id="h-key-macro-statistics-this-week">Key macro statistics this week</h2>
<p>Despite these encouraging technical signals, sentiment around Bitcoin remains fragile. The US inflation figures expected on May 14 and the comments from Fed Chairman Jerome Powell “could generate a new wave of volatility in cryptos,” warns Matt Bell, CEO of Turbofish.</p> 
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  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:BTCUSDT","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"dark"}</script>
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  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:BTCUSDT","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"light"}</script>
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<p>The market’s reaction to these macroeconomic data will be crucial to confirm or deny the emerging bullish trend. Given Bitcoin’s strong correlation with risk assets, a more aggressive monetary tightening than anticipated could dampen hopes for a sustainable rally.</p>
<p>While the stars seem technically aligned for a <a href="https://www.cointribune.com/en/bitcoin-still-undervalued-and-ready-to-take-off/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin surge</a>, caution is still advised. The evolution of macroeconomic fundamentals, especially interest rates, will be closely watched by investors. A breakout above $65,000 would be a strong signal to fuel the bullish momentum.</p>
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Bitcoin: Stellar Alignment Signals Price Surge Ahead!

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