The main focus here is the relationship between the Bitcoin price and the equity markets. Bitcoin has a strong positive correlation with the risk-on factors, and it has been moving higher as the equity markets scored more gains. The big question is if it continues to trade higher as cracks have started to show in the risk-on rally. Traders may back away from supporting riskier assets this week, and the comments from the Fed officials have indicated that the Fed doesn’t seem to be in a rush to end its ultra-hawkish monetary policy.
In terms of the price level, traders are focused on two price levels. Firstly, it is a resistance of 25K followed by that is the resistance of 30K. Secondly, it is the support which is at a 20K price level. If we see the price breaking above their price points, only then are we likely to see another trend forming.