Bitcoin breakout imminent ahead of key macro events-filled week

Bitcoin (BTC) is still looking for a trigger to break past the $20,000 level, having consolidated around the zone for several weeks. The asset’s possible rally has partly been delayed by the prevailing macroeconomic factors, with the flagship cryptocurrency trading in tandem with the stock market. 

Notably, both bulls and bears lack a clear advantage at the moment as they tussle for dominance when market participants are projecting that a possible rally is still in play. 

As things stand, Bitcoin was trading at $19,200 by press time, with slight gains of almost 2% in the last 24 hours. Notably, Bitcoin’s stabilization around the key psychological level of $20,000 has contributed to the asset’s dropping volatility.

The latest gains come about 24 hours after the cryptocurrency corrected to a low of about $18,700. However, the price has moved away from the key support zone of $18,900. At the same time, according to experts, Bitcoin’s price has been termed as discounted amid the extended bear market. 

Expert’s take on Bitcoin

In this line, crypto trading expert Michaël van de Poppe has suggested that Bitcoin’s potential breakout is imminent in the coming week, mainly triggered by macroeconomic events likely to impact risk assets like BTC positively. 

In a YouTube video posted on October 21, Poppe stated that factors like the upcoming speech by U.S. Treasury Secretary Janet Yellen would impact yields and likely dictate Bitcoin’s next price actions. This comes after the 10-year treasury yield rose to its highest level since 2008.

“When we turn around with the yields, it’s going to have an impact on risk and especially Bitcoin will do relatively well. Today, we are seeing that we are still making new highs, it’s decisive how the week is going to end. <…> Yields are going to fall, we most likely are going to climb to the upside,” Poppe said. 

Furthermore, Poppe stressed that data from earnings by big tech firms like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) would potentially impact the market and provide a chance to build positions.

He also pointed out that the Flash Manufacturing PMI (Purchasing Managers’ Index) for some European countries and the U.S. will be key. From Asia, Poppe noted that investors should look out for China’s GDP data and the Bank of Japan’s outlook report. 

Bitcoin price action

On the Bitcoin price action, Poppe highlighted that the next position to look out for is the $19,600 zone, and if flipped, it will be a trigger of longs with a focus on $20,700 and $22,100. 

Elsewhere, Poppe noted that longs are clear, but if Bitcoin breaks beneath $19,000 and bounces from $18,500, it will be a short trigger and take lows of $17,600. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.