Bitcoin drops after a weekend of consolidation, the trend remains bearish


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Investing.com – After a weekend of consolidation around a pivot around $38,000, and a peak at $38,700 on Saturday, the price has been stalling since the early hours of Monday with a low at $36,780 so far.

No particular information seems to justify this bout of weakness for BTC, either specifically about the cryptocurrency market, or about the general risk appetite of the market, the main factor influencing Bitcoin in recent weeks.

Graphically, the return of the decline since Sunday night into Monday corresponds to a rejection from a downtrend line visible from the November high, and therefore realigns Bitcoin with its underlying negative trend.

In this context, the $35,500 zone is the first support to watch before the low of January 24 at $32,980, then the major psychological threshold of $30,000. In the event of a rebound, it should be noted that a return above $38,500 would call into question the downward trend line mentioned above.

However, this would put Bitcoin against the major resistance of $40,000, a threshold that could block the rise at least temporarily.

Regarding the potentially influential events on Bitcoin to watch this week, it will be recalled that the cryptocurrency has reacted negatively in recent weeks to expectations of monetary policy tightening by the Fed.

Another major central bank, the ECB, will hold its monetary policy meeting this week, and a more hawkish stance than expected could weigh on cryptos. In the United States, the January employment report which will be published on Friday could influence expectations regarding the Fed and the rate hike expected in March, and therefore also Bitcoin.

Finally, on the other major cryptocurrencies, note that no Top 10 digital currency is showing in the green over 24 hours at the time of writing this article. With a pullback of 3.16%, Bitcoin shows the smallest pullback, while Bitcoin shows the worst drop in the top 10, falling more than 12% since yesterday.

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