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The Bitcoin (BTC/USD) price retreated on Monday after it surged to its highest level in three months during the weekend. The coin retreated to $46,480, which was slightly lower than the weekend high of $48,130.
Bitcoin rally eases
The Bitcoin price has been in a strong bullish momentum in the past few weeks. This saw it jump from below $30,000 to a high of more than $48,000 during the weekend.
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Along the way, the coin’s total market capitalisation has jumped to more than $874 billion, according to data compiled by CoinMarketCap. The value of all coins tracked by the company has jumped to more than $2 trillion for the first time in two months.
There are several catalysts why the BTC price has jumped recently. First, there are signs that more companies are getting interested in cryptocurrencies. Already, companies like Tesla, SpaceX, and MicroStrategy have already invested billions in Bitcoin.
A few weeks ago, Amazon advertised that it was hiring a professional to lead its cryptocurrency initiatives. At the same time, there were rumours that the company was considering accepting the coin in its marketplace. The company denied these rumours.
Meanwhile, during the weekend, Walmart advertised that it was seeking to hire a cryptocurrencies lead. This means that the firm, which is the biggest American retailer, was thinking about the industry. This is a positive thing since other companies will likely join these firms.
The key catalyst for the Bitcoin price this week will be a speech by Jerome Powell and the Federal Open Market Committee (FOMC) minutes. Powell’s speech on Tuesday is notable since it comes at a time when some Fed officials have started hinting about tapering of asset purchases.
As such, a comment about tapering from the Fed chair is important because BTC prices tend to do well in an easy-money environment.
Bitcoin price prediction
The four-hour chart shows that the BTC price rose to a high of $48,095 during the weekend. It seems like it found a strong resistance at this level and formed a double-top pattern. It remains slightly above the 25-day and 50-day exponential moving averages (EMA).
However, it has dropped below the key support level at $46,760 while the Relative Strength Index (RSI) has dropped to about 50. Therefore, the coin will likely drop slightly as traders target the key support at $45,00. Still, the overall outlook for the coin remains bullish.
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