Bitcoin (BTC<\/a>) begins a new week barely clinging to $30,000 as a \u201cbearish divergence\u201d sets the tone.<\/p>\n After a quiet weekend, BTC price action faces a potential pullback period within its broader bullish trend, traders say.<\/p>\n What could be on the menu for the market this week? <\/p>\n After a relative period of calm, external triggers are back for risk assets, with a slew of United States macroeconomic data releases combined with multiple speeches from Federal Reserve officials.<\/p>\n Add to that some interesting dynamics around U.S. BTC buying now in play, and the recipe for volatility is there.<\/p>\n Cointelegraph looks at these factors and more in the weekly rundown of what might move markets in the coming days.<\/p>\n Bitcoin may have closed the week at just over $30,000, confirmed by data from Cointelegraph Markets Pro<\/a> and TradingView<\/a>, but its strength now looks less convincing.<\/p>\n A dip into the $20,000 zone immediately afterward set the tone for traders, who believe that a retracement period could enter before upside resumes.<\/p>\n \u201cWill be looking for trend continuation so another higher low between current price & $28K,\u201d trader Skew explained<\/a> in his short-term forecast. <\/p>\n \u201cElse obvious weakness leads to a break in the 1W structure (Equal high & LL below $25K).\u201d<\/p><\/blockquote>\n Fellow trader Jelle eyed a warning sign on weekly timeframes.<\/p>\n \u201cBitcoin locked in a weekly bearish divergence overnight,\u201d he told<\/a> Twitter followers about relative strength index (RSI) behavior after the candle close. <\/p>\n \u201cTime to play defense for a while. The bull market is coming, but pullbacks are part of the game. Bidding lower, let\u2019s see.\u201d<\/p><\/blockquote>\n For Crypto Tony, the downside could be limited to $29,500, this complementing a previous trip to new yearly highs the week prior.<\/p>\n \u201cSweep of $29,500 makes sense to me as the bulls just seem weaker and weaker right now. We have a sweep of the liquidity above us, so now it is time to grab the liquidity below us If you are not yet in a position, be sure to wait for this test and reclaim,\u201d he summarized<\/a>.<\/p>\n A further post zoomed out to predict<\/a> up to 40% higher for BTC\/USD in 2023, this nonetheless to be followed by a \u201cbigger correction.\u201d<\/p>\n Macro commentators have their work cut out this week as the Consumer Price Index (CPI) leads U.S. economic data prints.<\/p>\n Due on July 12, CPI showing inflation dropping will go some way to lessening a still-hawkish Fed.<\/p>\n Markets almost unanimously agree that interest rates will rise again after last month\u2019s pause, with trend-beating data apt to spark some last-minute uncertainty.<\/p>\n CPI will be followed by Producer Price Index (PPI) a day later, while a total of eight Fed officials will deliver remarks on the economy and policy.<\/p>\n \u201cVolatility is set to return to markets this week,\u201d financial commentary resource, The Kobeissi Letter, forecast<\/a> while summarizing the calendar.<\/p>\n Fed Speakers This Week: \u2014 The Kobeissi Letter (@KobeissiLetter) July 9, 2023<\/a><\/p><\/blockquote>\n The latest data from CME Group\u2019s FedWatch Tool put rate hike odds<\/a> at 92% at the time of writing, slightly down from last week\u2019s 95% figure.<\/p>\n Continuing, financial commentator Tedtalksmacro argued that core CPI would be the figure to watch for the Fed.<\/p>\n \u201cHeadline is expected to fall to 3.20% YoY, which would make for the lowest print since March 2021. The Cleveland Fed, University of Michigan + Truflation all anticipating a similar number,\u201d he noted<\/a> in part of a Twitter thread.<\/p>\n \u201cCore CPI is expected to tick lower to 5.1% YoY, the lowest level since November 2021. Core remains the concern for the market, and I’d anticipate the market gives it more weight in it’s reaction on Wednesday.\u201d<\/p><\/blockquote>\n In a refreshing turnaround, Bitcoin network fundamentals are gearing up to hit new all-time highs in the coming days.<\/p>\n The latest estimates from BTC.com<\/a> predict that network difficulty will jump by more than 5% \u2014 its largest single upward adjustment since late March.<\/p>\n Given stagnant price action, this is significant, speaking to ongoing competition in the mining sector and increasing belief in future profitability. In doing so, the difficulty will cancel out its previous dip to hit new record highs of around 53.2 trillion.<\/p>\n A similar story concerns hash rate, which by some estimations<\/a>, crossed the 400 exahashes per second (EH\/s) mark for the first time in recent days.<\/p>\n BTC price remains more than 50% below its 2021 peak, lending additional weight to the classic adage<\/a>, \u201cprice follows hash rate.\u201d<\/p>\n Commenting on what might come, Blockware mining analyst Joe Burnett suggested that Bitcoin would return to finish what it started after the 2020 breakout to pass its all-time highs three years earlier.<\/p>\n \u201cDuring the 2017 bull run, there was no national mining ban that put half of the entire network hashrate out of business, and there were also no fake coins being sold by FTX, BlockFi, and Celsius,\u201d he reasoned<\/a>. <\/p>\n \u201cMost are not ready for the next parabolic run.\u201d<\/p><\/blockquote>\n The recent filings for Bitcoin spot price exchange-traded funds (ETFs) in the U.S. has kickstarted a buying spree.<\/p>\n As Cointelegraph reported over the weekend<\/a>, U.S. activity is back trending higher, vying with Asia when it comes to BTC supply ownership.<\/p>\n The implications for the dwindling supply become clear over longer periods, analysis argues, with just 7.5% of Bitcoin\u2019s immutable 21 million coins left to mine.<\/p>\n \u201cDuring this Bitcoin cycle, differently from the 3 previous cycles. the amount of Bitcoin available to trade decreased over time,\u201d commentator Alessandro Ottaviani argued<\/a> this weekend. <\/p>\n \u201cIf the trend continues, a supply shock is inevitable. It is only a matter of time, we just don\u2019t know when. Being Bitcoiners, we can wait, because if we are Bitcoiners our Time Preference is low.\u201d<\/p><\/blockquote>\n Ottaviani uploaded a chart known as the \u201cHODL Model\u201d \u2014 a popular tool mapping supply availability versus price performance into the future.<\/p>\n On the topic of ETFs, notably that of the largest global asset manager, BlackRock, Ottaviani added that the mainstream narrative was already switching to condoning Bitcoin instead of bashing it.<\/p>\n 1\/5<\/p>\n The \u201cBlackrock effect\u201d in the Bitcoin is already started.<\/p>\n One of the effects can be seen in the Bitcoin mining world. In the same week we have noticed 4different articles in Forbes in favor of Bitcoin Mining. #Bitcoin<\/a> pic.twitter.com\/nXikYM8UtG<\/a><\/p>\n \u2014 Alessandro Ottaviani (@AlexOttaBTC) July 9, 2023<\/a><\/p><\/blockquote>\n It is not just miners showing \u201cconfidence\u201d when it comes to future Bitcoin profitability.<\/p>\n Related:\u00a0AI has potential to send Bitcoin price over $750K \u2014 Arthur Hayes<\/a><\/em><\/strong><\/p>\n As noted by research firm Santiment this weekend, the largest-volume Bitcoin investor cohorts are keenly buying, even amid stagnant BTC price conditions.<\/p>\n Since mid-June, so-called sharks and whales \u2014 entities with between 10 and 10,000 BTC \u2014 have increased their exposure by over 70,000 BTC.<\/p>\n \u201cBitcoin\u2019s sharks and whales aren\u2019t showing any signs of slowing down, even with prices beginning to get \u2018boring\u2019 in this $30k to $31k range,\u201d Santiment commented<\/a>. <\/p>\n \u201cSince June 17th, 10 to 10k $BTC addresses have accumulated 71k more coins, equating to $2.15 billion.\u201d<\/p><\/blockquote>\n Separate data from on-chain analytics firm Glassnode<\/a> shows whale numbers \u2014 those with at least 1,000 BTC \u2014 at eight-month highs. <\/p>\n Collect this article as an NFT<\/a><\/em><\/strong> to preserve this moment in history and show your support for independent journalism in the crypto space.<\/em><\/em><\/p>\nLimp $30,000\u00a0support\u00a0gets traders hungry for BTC price dip<\/h2>\n
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8 Fed speakers accompany major macro data week<\/h2>\n
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1. Fed Vice Chair Barr – Monday
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2. FOMC Member Daly – Monday
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3. FOMC Member Mester – Monday
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4. FOMC Member Bostic – Monday
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5. FOMC Member Bullard – Tuesday
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6. FOMC Member Kashkari – Wednesday
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7. FOMC Member Mester – Wednesday
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8. Fed Board\u2026<\/p>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-07\/03fe9f03-0966-42da-87ee-ec1bd256fe26.png\")
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Bitcoin mining difficulty following hash rate to fresh record high<\/h2>\n
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BTC supply shock \u201cinevitable\u201d<\/h2>\n
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Big fish step up exposure<\/h2>\n
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