Stellar Alignment Signals Price Surge Ahead!

Bitcoin’s price has been stagnant for weeks, but technical analysts see potential for a bullish reversal. However, upcoming macroeconomic indicators could heavily influence BTC’s short-term trajectory.

Is Bitcoin about to break its downtrend?

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 bullish signal.

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.

Analyst Rekt Capital notes 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.

Key macro statistics this week

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.

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.

While the stars seem technically aligned for a Bitcoin surge, 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.