Bitcoin (BTC) starts a new week digesting major macroeconomic news as the United States sees the second-largest bank failure in its history.
After a sideways weekend, BTC/USD was already volatile into the new weekly and monthly candle as downside kicked in.
After steadying below $29,000, BTC price action is already facing more potential pressure as First Republic Bank is placed in public receivership and taken over by JPMorgan Chase.
The move, announced during Asia trading but before the Wall Street open, precedes an already heavy week in which the Federal Reserve will reveal its next interest rate shift.
With a lot to take in, the potential for continued surprises on crypto markets is clearly in evidence.
Cointelegraph takes a look at these risks and more in the weekly rundown of crypto, and specifically Bitcoin, price triggers.
BTC price volatility upends flat monthly close
Classic flash volatility accompanied Bitcoin’s segue into a new weekly and monthly candle after April finished sideways.
After closing out the month at $29,300, BTC/USD swiftly dived lower as bid liquidity was pulled from the Binance order book.
This, monitoring resource Material Indicators noted, was responsible for delivering the overnight local lows of $28,289 on Bitstamp, as tracked by data from Cointelegraph Markets Pro and TradingView.
#FireCharts 2.0 (beta) shows that when $29,150 was getting filled the bid ladder below was pulled and moved lower. #BTC price action sliced through the freshly open hole of illiquidity like a hot knife through butter.
Seeing these moves play out in near realtime is a great way… pic.twitter.com/CnvRLRNcwc
— Material Indicators (@MI_Algos) May 1, 2023
Bitcoin thus reached “bounce” targets for some, including Michaël van de Poppe, founder and CEO of trading firm Eight, who noted potential strength on altcoin markets returning.
“Bitcoin didn’t hold $29,200 after multiple tests. Reached $28,300 for a bounce play. Good part; Altcoins are bouncing more firmly,” he summarized on the day.
The day prior, Van de Poppe had warned that without a reclaim of $30,000, Bitcoin would not be able to continue its uptrend, while correctly predicting the eventual reversal level.
Standard chop on #Bitcoin in the weekend.
No breakout above $30K = no trigger for continuation.
Holding above $29.2K, and still facing a potential correction to $28.3K as the ideal trigger for new longs.
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