Bitcoin fell 6.9% last week to close at $26,900, the total capitalisation of the crypto market fell by 5.5% over the week to $1.13 trillion, according to CoinMarketCap. One of the main reasons was issues at Binance, where BTC withdrawals were suspended twice.

Bitcoin proved interesting for sellers as it touched the 200-week average, passing close to $26,000 last Friday. By defending this key average, the bulls have convinced the market of the sustainability of the long-term bullish trend. On Saturday and Sunday, the Bulls defended the $26.8K level. On Monday, investors switched to active buying and pushed the price to $27.5K.

However, cautious buyers will likely want to see a $28-28.5K takedown as confirmation of the break of last month's downtrend.

According to CoinShares, investments in crypto funds fell by $54 million last week, the fourth consecutive week of outflows. Bitcoin investments fell by $38 million, while Ethereum rose by $0.1 million. Investments in bitcoin short funds fell by $10 million.

According to a survey from Bloomberg, BTC has surpassed USD as the preferred asset for investment. This is due to the concerns surrounding the US national debt, as raising the debt ceiling continues to be a matter of discussion. This would be a boon for Bitcoin price, which has increased by more than 66% since the beginning of the year and is potentially preparing for a bull market in 2024. According to popular trader Inmortal, the rest of 2023 is set to note a mid-cycle rally.

This makes $32,000 and $37,800 the next major targets as they coincide with the 23.6% and 38.2% Fibonacci Retracement of $67,300 to $20,288.

However, some resistance from bearish broader market cues could impact the potential of Bitcoin price to reach these targets.

Bitcoin to extend its complex correction before bullish run

May 16 2023