Bitcoin (BTC) is entering a new week with some intriguing momentum, as its price approaches a record high.
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Bitcoin has jumped to $122,000, signaling a potential upward trend in prices.
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Discussions over the weekend highlighted the CME gap, which suggests a retracement target of $117,000.
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This week, market expectations around CPI and PPI indicate a possibility of interest rate cuts next month.
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Whale trading in USDT suggests a reluctance to book profits at this moment.
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A decline in Coinbase Premium could pose challenges for Bitcoin in the upcoming US trading session.
Bitcoin Surges to $122,000 Over the Weekend
Price movements in Bitcoin provided a boost for bullish traders as the weekend unfolded.
Bitcoin experienced a swift rise, reaching a peak of $122,312 according to Cointelegraph Markets Pro, before a slight retracement occurred.
This rally led to the liquidation of short positions exceeding $100 million, right as Bitcoin approached its previous all-time high.
Monitoring tools from Coinglass indicate growing resistance around the $123,000 mark.
Market participants expressed relief but maintained a cautious outlook. Some suggested that Bitcoin might take time to consolidate gains before aiming for higher levels.
Michael Van de Poppe, a crypto trader and analyst, mentioned on social media, “Bitcoin looks fantastic, but remember, it’s just a weekend move.” He indicated that we may see some pullbacks before making another run.
“I think we might test lower levels before continuing. Buying into those dips could lead to significant movements in altcoins.”
On a larger scale, trader Bitble pointed out a bullish signal that extends beyond the current price struggles. The ratio of leveraged futures to spot purchases is currently low, a situation not seen since the last bear market in late 2022.
“That’s rare,” he noted. “It suggests that this rally isn’t driven by leveraged longs that could vanish quickly, but by spot demand, which is more resilient to volatility.”
New Bitcoin CME Gap Attracts Attention
As Bitcoin dipped, traders were focused on an emerging consideration: the recent gaps in CME Group’s Bitcoin futures.
The rise over the weekend has created a new gap, with attention focused on whether this gap will be filled, as it often is in short order.
I hate being that guy…
But there’s a significant CME gap from $117,000 to $119,000.
It would be best to close this promptly.
Filling these gaps has become a common phenomenon in Bitcoin trading, with prices often oscillating to close them quickly. Trader Gerre reflected on the community’s sentiment, mentioning that keeping an eye on this new gap is important.
For the latest gap, BTC/USD needs to breach just above $117,200, an area that is important for potential resistance or support.
On Sunday, analyst Rect Capital labeled the approaching weekly close as “decisive,” indicating its significance regarding the $117,200 level.
US Macro Data Week: CPI Takes Center Stage
This week also brings the US Consumer Price Index (CPI) and Producer Price Index (PPI) to the forefront, with markets seeking cues on economic policy.
As pressure mounts on the Federal Reserve from various quarters, including supporters of President Trump, interest rates remain a key topic for traders of risk assets.
As communicated by Kobeissi Letter, “This week’s inflation data is crucial as we look toward the Fed meeting in September.”
The FedWatch Tool currently indicates nearly a 90% chance of rate cuts next month, a significant jump from 57% a month ago.
The CPI is predicted to be slightly higher than last month, though cooling expectations might weigh on the market sentiment.
“If the CPI comes in lower than anticipated, we could see a rate cut in September, which would likely boost risk-on assets,” remarked one trader, dubbing the week a prominent moment for cryptocurrencies.
However, higher-than-expected CPI figures could dampen the odds of such cuts and negatively impact crypto markets.
Whales Slow Down BTC Sales
If on-chain analytics are to be believed, one particular Altcoin blockchain is worth monitoring for signs of potential price reversals in Bitcoin.
A recent blog post from contributor Amr Taha observed that large transfers of Tether (USDT) on the Tron network seem to correlate with fluctuations in Bitcoin prices.
Taha noted that transactions above $100 million often reflect significant profits from Bitcoin trades. His analysis pointed out recent spikes in USDT trading coinciding with Bitcoin price adjustments.
However, currently, these whales seem hesitant to cash in, indicating a lack of aggressive selling.
“Data suggests whales are holding on to their USDT amid a slowdown in substantial transactions,” Taha concluded.
Concerns Over Coinbase Premium
Fears concerning the sustainability of Bitcoin’s price upward momentum have surfaced among some traders.
Issues raised by Cryptoquant analyst Ja Maartunn pointed to the Coinbase Premium, which measures the price difference between Bitcoin on Coinbase and Binance, returning to negative territory.
“Coinbase pump and dump?” he queried, referencing recent volatility.
“The price has surged from $118,000 to $122,000 as investors rushed in.”
A negative premium indicates a waning interest among Coinbase users, which could influence the ability for prices to hold in a stable manner as US trading hours commence.
Trader Roma expressed caution, noting bearish signals. “It’s encouraging to see prices break resistance, but there are red flags like low volume and increased short positions,” he stated.
“Historical patterns often justify breakouts. Right now, I’m not seeing that validation, so I wouldn’t be surprised if we stagnate or trend slightly lower.”
This article does not provide investment advice or recommendations. All trading involves risks, and readers should conduct their own research before making decisions.
