Bitcoin (BTC) starts a new week in a precarious place as global macro instability dictates the mood.
After sealing a weekly close just inches above $19,000, the largest cryptocurrency still lacks direction as nerves heighten over the resilience of the global financial system.
Last week proved a testing time for risk asset investors, with gloomy economic data flowing from the United States and, moreover, Europe.
The Eurozone thus provides the backdrop to the latest concerns of market participants, who are watching as the financial buoyancy of major banks is called into question.
With the war in Ukraine only escalating and winter approaching, it is perhaps understandable that hardly anyone is optimistic — what could the impact be on Bitcoin and crypto?
BTC/USD remains below its prior halving cycle’s all-time high, and as comparisons to the 2018 bear market flow in, so too is talk of a new multi-year low.
Cointelegaph takes a look at five BTC price factors to watch in the coming days with Bitcoin still firmly below $20,000.
Spot price avoids multi-year low weekly close
Despite the bearish mood, Bitcoin’s weekly close could have been worse — at just above $19,000, the largest cryptocurrency managed to add a modest $250 to last week’s closing price, data from Cointelegraph Markets Pro and TradingView shows.
BTC/USD 1-week candle chart (Bitstamp). Source: TradingView
That prior close had nonetheless been the lowest since November 2020 on weekly timeframes, and as such, traders continue to fear that the worst is yet to come.
“The bears remained in full swing last night during the Asian, while the bulls failed to give us any good rallies to work off on,” popular trader Crypto Tony wrote in part of a Twitter update on the day.
Others agreed with a summary which concluded that BTC/USD was in a “low volatility” zone which would necessitate a breakout sooner or later. All that was left was to decide on the direction.
“Next big move is up,” Credible Crypto responded.
“Typically prior to these major moves and after capitulation we see a period of low volatility…..