Week Ahead: Crypto market eyes a bullish turnaround

fxstreet.com 13 May 2024 14:34, UTC

Analytics

A new week has begun, but crypto markets seem to be doing the same thing they have for the past few weeks – consolidate. However, this week will likely bring new opportunities as Bitcoin begins to show signs of revival.

Bitcoin outlook remains unchanged

Bitcoin ($BTC) price has been slowly sliding lower and currently trades at $63,000. This consolidation has been underway for nearly two months. After the May 1 correction, $BTC should have seen a positive spike in buying pressure, but it failed to sustain. Since that crash, the pioneer crypto has set up a higher high at $65,540 and a higher low at $60,111, indicating a potential shift in market structure favoring bulls.

Going forward, investors can expect Bitcoin price to climb higher and retest the trend line that connects the all-time high (ATH) of $73,949 and subsequent lower highs. If $BTC can overcome this declining resistance level, the chances of resuming the bull rally will increase exponentially.

$BTC/$USDT 1-day chart

With Bitcoin showing signs of a potential bullish reversal, the ripple effect from it could see altcoins break out from their consolidation as well. In addition to the positive $BTC outlook, there are two important macroeconomic events this week that could add volatility to the mix.

Macroeconomic events this week

May 14 - Fed Chair Jerome Powell's speech at 14:00 $GMT
May 15 - US CPI inflation report at 12:30 PM $GMT

Crypto token unlocks this week

This week will see altcoins worth $1.2 billion flood the crypto markets. Here are the top three unlocks:

May 15 - Aevo (AEVO) - $961 million
May 16 - Arbitrum (ARB) - $92 million
May 15 - Stark ($STRK) - $77 million

Although token unlocks are generally bearish, one or all of the three altcoins could see an uptick in buying pressure before the unlock. This development could lead to a sell-the-news event for the underlying token, where the altcoin reverses the bullish trend.

Stark’s $STRK token could see a bullish recovery rally since it is retesting the declining trendline after a breakout on May 2. Stark price could see a 25% to 45% rally that retests the $1.483 and $1.749 hurdles.

$STRK/$USDT 12-hour chart