Bitcoin is poised for a decisive week, as traders and analysts anticipate whether the cryptocurrency will reach new highs or face a short-term correction. After experiencing a recent sell-off, Bitcoin has seen a steady upward trend, reaching a high of $106,958 on Monday before settling to around $106,685 in the last 24 hours. This surge comes after a week of losses that saw Bitcoin drop to lows of $100,377.
Experts anticipate a short-term test of support levels at around $104,000 this week. The key factors driving this are upcoming inflation data releases, the current bull market recovery, and on-chain indicators highlighting potential price movements.
Swissblock X (@swissblock__) highlights three potential scenarios for Bitcoin in the coming days:
1. Inflation data due later this week could cause volatility, with expectations of a significant change in consumer price indexes and producer price index releases by Wednesday and Friday respectively.
2. The market is seeing cautious but positive signs from bulls who are rebuilding momentum and aiming to reverse recent bearish trends.
3. While initial steps have been made towards regaining control, the short-term test of support around $104,000 seems likely.