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Investing.com – For once, it was a very quiet weekend for the and the cryptocurrency market in general. The has indeed consolidated in a narrow range, after a sharp fall that some have described as a flash crash at the end of last week.
Remember that Bitcoin plunged 6% in less than an hour overnight from Thursday to Friday. Several crypto analysts have pointed out that the setbacks of the crypto bank Silvergate, which could go bankrupt, played a big role in the weakness of Bitcoin.
Rumors from the Wall Street Journal about possible uses of falsified documents by partners of , the issuer of the world’s largest stablecoin, have also weighed on the general morale of crypto traders.
This week, investors’ attention should once again turn mainly to macroeconomic data, while US employment will be in the spotlight with the ADP (EPA:) and NFP reports on Wednesday and Friday respectively.
Strong data could bolster expectations of a more aggressive Fed, leading to a likely steeper drop in Bitcoin and cryptocurrencies in general.
Bitcoin Chart Profile Remains Positive
From a chart perspective, Bitcoin is holding above an uptrend line visible from the January 18 low. Additionally, the 100-day moving average crossed above the 200-day moving average late last week, which is a bullish signal.
If BTC/USD starts a rebound, the 50-day moving average, which currently merges with the $23,000 threshold, will be the first resistance to cross. Then $24,000 will be the last significant hurdle before Bitcoin targets new yearly highs above $25,250.
If, on the contrary, the cryptocurrency takes the downward path, we can consider that a break below $22,000 would break the upward trend line mentioned above. In this case, $21,500 will be the next support to watch.