5 things to know about Bitcoin this week SEC, CPI, and a strong rebound.

Bitcoin (BTC) is starting the week in a risky position, with key support levels remaining out of reach for buyers.

Following recent losses across cryptocurrency markets over the weekend, BTC/USD closed the week below $26,000 for the first time in three months.

Both Bitcoin and altcoins are struggling due to ongoing legal battles in the United States, which are impacting market sentiment.

Now, fragile markets will face a plethora of volatility triggers as U.S. macro data releases accompany the next steps in the crypto legal debacle.

Traders are likely to experience none of the lackluster sideways price action that characterized crypto markets before the recent upheaval in what promises to be a week full of surprises.

How will the coming week shape up? Cointelegraph takes a look at the major factors to consider when it comes to Bitcoin and the wider crypto market’s price action.

Bitcoin loses key trend line, but some remain bullish

Bitcoin’s price closed the weekly candle in a disappointing position, with last-minute downside wiping value from the cryptocurrency as a whole.

The removal of various altcoins by certain trading platforms concerned about U.S. legal ramifications sent prices tumbling, leading BTC/USD to its lowest weekly close since mid-March, according to data from Cointelegraph Markets Pro and TradingView.

In doing so, the pair also locked out the 200-week moving average (MA) as support.

“A BTC Weekly Candle Close below the 200-week MA could confirm it as a lost support,” warned trader and analyst Rekt Capital.

“In that case, $BTC could relief rally into the MA next week, potentially to flip it into new resistance. This sort of turn of technical events could precede additional downside.”

Michaël van de Poppe, founder and CEO of trading firm Eight, shared similar concerns about the fate of the total crypto market cap.

“Mayday, mayday. Total market capitalization is beneath the 200-Week MA and EMA. Needs to get back above $1.04T during this week to avoid further downwards momentum for #Crypto.” pic.twitter.com/J5lb8G5APU

— Michaël van de Poppe (@CryptoMichNL) June 12, 2023

With traders’ downside targets already extending to $24,000 and below, some took the opportunity for more optimistic takes on both shorter and longer timeframes.

Daan Crypto Trades noted upside potential thanks to the weekend losses opening up a CME futures gap.

That gap stands between $26,150 and $26,500, with BTC/USD previously “filling” another within hours.

Popular trader Credible Crypto insisted that despite everything, long-term resistance levels for Bitcoin would not pose much of a problem in the end. $40,000, he repeated, was still a target of choice.

“When you have a major correction down and folks are underwater, there is resistance to the upside as moves up are sold into by bag holders. When you have capitulation down and folks have been drowned (forced to sell at the bottom), that sell pressure no longer manifests as we move up because ‘there is no one left to sell,'” read part of his weekend Twitter commentary.

“If bag holders dumped at the bottom, then the only sell pressure above is from short-term traders/profit takers, and that’s not enough to stop a major impulsive move in its tracks for long. Expect ‘major resistance levels’ above to get melted through a lot faster than most are expecting.”

Bitcoin runs gauntlet ahead of “massive” macro week

The upcoming week is expected to bring many potential triggers for cryptocurrency prices, stemming from both economic and geopolitical factors. The SEC vs. multiple exchanges case continues to have ongoing effects, and there is also macroeconomic data that promises volatility. On June 13, there will be the May print for Consumer Price Index (CPI) inflation, and markets expect the Federal Reserve to pause interest rate hikes. This would end an uninterrupted hiking cycle that started in late 2021 and coincided with Bitcoin’s all-time high. With a loosening of economic conditions on the horizon, market commentators are considering the possibility of a risk asset rally. Meanwhile, underlying network data for Bitcoin is showing an altogether different trend as network difficulty and hash rate are aiming for new all-time highs. This week, network difficulty will increase by approximately 2.5% on June 14, taking it past 53 trillion for the first time. Despite BTC price pressures, network fundamentals are in “up only mode,” with 2023 only seeing three difficulty reductions out of 12 adjustments in total.

The founder of LookIntoBitcoin, Phillip Swift, has described the current difficulty levels for Bitcoin miners as “increasingly challenging,” except for the most robust miners.

The Miner Difficulty for Bitcoin has just reached a new all-time high, making it an increasingly challenging environment for any underperforming miners. The difficulty is currently at 51.2 Terahashes. You can view the free live chart here: https://t.co/dEnNrrD4l4 pic.twitter.com/V8QNKyXAPv

— Philip Swift (@PositiveCrypto) June 9, 2023

Data from on-chain analytics firm Glassnode shows that miners are still coming online in real-time, despite an uncertain macroeconomic environment and regulatory pressure.

“Although the environment is challenging, ASICs continue to come online as the Bitcoin Hash Rate (7DMA) reaches an ATH of 381 EH/s,” researchers commented on a chart of hash rate.

“This is equivalent to 381 quintillion guesses attempted every second to solve the Block puzzle.”

Recent data from Glassnode also suggests that there has been an increase in miner inflows to exchanges, with the highest daily levels since 2019 being recorded last week.

“Over the past week, Bitcoin Miners have been sending a significant amount of coins to Exchanges, with the largest inflow equal to $70.8M. This is the 3rd largest inflow on record, -$30.2M less than the peak inflow of $101M recorded during the primary bull market of 2021.” pic.twitter.com/w4fNFMcxr4

— glassnode (@glassnode) June 11, 2023

James Straten, a research and data analyst at the crypto news and insights platform CryptoSlate, suggests that mining pool Poolin was the likely main contributor to the inflows.

Whales boost BTC exposure during altcoin sell-off

According to research firm Santiment, Bitcoin’s largest-volume investor cohort, the whales, have been buying more BTC despite the recent crypto market upheaval. This bullish behavior from the whales is a divergence from the rest of the investor base, who have been distributing BTC since May.

With altcoins experiencing a sell-off last weekend, whales took the opportunity to increase BTC exposure rather than decrease it.

“As altcoin madness has ensued, there quietly is a bullish divergence between Bitcoin’s accumulating whales and falling price,” said Santiment.

“With whale holdings moving up by ~1K $BTC per day while prices fall, there is reason to believe a strong rebound can occur.”

Despite the recent market turmoil, sentiment across the broader crypto market remains neutral, with the Crypto Fear & Greed Index hovering around the center of its 0-100 scale.

Magazine: Tornado Cash 2.0: The race to build safe and legal coin mixers

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