'Most bullish macro backdrop in 75 years' - 5 things to watch about Bitcoin this week

Will 2022 still be a bull market? Not many think so, but analysts said this week that short-term volatility should end.


Bitcoin started the new week at an odd level - eerily similar to this time last year.

After a 12-month “correction” described by various sources, BTC/USD is around $42,000, almost exactly where it was in the second week of January 2021.

There have been many ups and downs during this period, but basically Bitcoin remains in the now-familiar range.

Different people see the outlook differently - some see a record high this year as a strong possibility, while others see more corrections to come in the months ahead.

With crypto market sentiment at an all-time low, Cointelegraph analyzed what could change the status quo on a shorter time frame in the coming days.

Can $40,700 hold up?

Bitcoin has had a rough weekend, the latest in a series of sudden downside moves near support at $40,000.

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD rebounded after hitting $40,700 on major exchanges and has remained in correction since.

Ironically, on the same day in 2021, it is this level that is in focus, nonetheless, during the more vertical phase of Bitcoin's recent bull run.

In September last year, the focus also returned to $40,700, a turning point after several weeks of correction that culminated in BTC/USD climbing to an all-time high of $69,000.

But now, analysts see the odds of a break below the $30,000 range unreservedly raised.

"Weekly close is coming," Rekt Capital concluded next to a chart marked with target levels.

“Theoretically, it is possible for BTC to close the week above $43,200 (black), enjoying the green for the next week. But with a weekly close below $43,200, BTC could revisit the red zone below.”