Bitcoin Continues to Trade in an Extended Range

Bitcoin experienced a slight decline on Monday, yet it remains ensconced within a prolonged range that has persisted for seven consecutive days. The immediate trajectory continues to exhibit lateral movement, with the search for clearer directional cues ongoing. Daily analyses present a mixed picture, marked by waning positive momentum juxtaposed with bullish moving averages, while weekly assessments, although bullish, indicate an overbought market, contributing to the current ambiguity in the short-term outlook.

The previous week witnessed a monthly closure above the $70,000 threshold, potentially signaling positivity. However, for this signal to hold weight, bullish momentum must be sustained above this level.

Trader sentiment reflects a division, with contrasting perspectives on whether the correction from the recent record high has concluded, paving the way for a renewed surge, or if a more substantial pullback is imminent.

The recent strengthening of the dollar, spurred by soft US inflation data, fuels anticipation for a Federal Reserve interest rate cut in June, a factor that could exert downward pressure on Bitcoin prices.

Initial support rests at $69,055, anchored by the ascending 10-day moving average, providing a buffer against further decline. This support is further fortified by the 20-day moving average at $68,250. A breach of these levels could precipitate a more pronounced downturn.