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“Expect increased volatility.” What will happen to Bitcoin in the next week?

The week from March 25 to March 31 was relatively quiet. The following key factors influenced the crypto market: the dynamics of the US dollar, stock indices and their futures, data on inflation in the US, measured by the PCE index, as well as the speech of Fed Chairman Jerome Powell. News of the allegations against the KuCoin exchange raised concerns and led to a massive outflow of funds from the platform, but did not have a strong impact on the market.

On March 25, Bitcoin showed a strong growth of 3.97% and closed at $69,880 per coin. This rise came after the bulls were able to overcome the important resistance level at $65,430 on Sunday, which marked a reversal of the local downtrend. On March 26, the BTC/USDT pair rose 0.15% to $69,988, reaching an intraday high of $71,561. Buyers took a break, retreating to $69,280. On March 27, increased volatility was observed. The BTC/USDT pair fell 0.74% to $69,469 after failing to break above $71,769. The price fell 5% to $68,359, but did not go below that level. On March 28, the BTC/USDT pair rose 1.89% to $70,780. The price touched $71,500 three times, but was unable to move higher due to a drawdown in S&P 500 futures before the close of trading. On March 29, trading on the BTC/USDT pair ended with a decline of 1.31% to $69,850. Despite buyers’ attempts to develop upward momentum, they were unable to maintain their gained positions. During the American session, the Bitcoin rate dropped to $69 thousand.

Since the US and European stock exchanges were closed on this day due to the Easter holidays, the cryptocurrency market lost the guidelines set by traditional markets. Pressure on prices could come from published inflation data in the United States, as well as a speech by Federal Reserve Chairman Jerome Powell. By the close of trading, the price of Bitcoin had recovered to $69,850, remaining within a four-day sideways trend with a range of $68,350 – $71,550 (the week’s high was $71,769).

On Sunday, March 31, Bitcoin (BTC) was trading at $70 thousand, its price has increased by about 8% over the past week. A well-known specialist and CFO of the investment fund Astol Advanced Limited (investment project ASTL) analyzed the situation on the market and assessed the prospects for the movement of the Bitcoin rate over the next seven days.

US inflation, as measured by changes in the personal consumption expenditure (PCE) price index, rose to 2.5% year-on-year in February, according to released figures. The core PCE price index also showed growth. The data was in line with expectations, but appeared to put some pressure on the market. Since traditional exchanges were down, it was predominantly Bitcoin that reacted. Rising inflation and Jerome Powell’s words about the need to keep rates high could mean that the Federal Reserve will be cautious about changing rates. The coming week will be filled with the publication of important macroeconomic indicators, so we should expect increased volatility in all markets. Market conditions and new employment data will be key factors in future Fed decisions between April 1 and April 7.

Bitcoin is currently flat with a range of around 5% or $3,450. The technical picture remains on the buyers’ side. The only potential negative factor could be the strengthening of the dollar after the long weekend. If markets open calmly on Monday, an upward exit from the sideways range is expected. Possible technical resistance levels could be $72,650 and $73,800. According to BitRiver, sellers’ targets are $65,800 and $60,800.

It’s also important to note that the issuers of the nine new spot Bitcoin ETFs launched on January 11 currently hold more than 500,000 BTC, worth $35.2 billion at current exchange rates. The first place in terms of the number of coins in the vault is occupied by BlackRock with approximately 250 thousand BTC, in second place is Fidelity with about 150 thousand BTC, and Bitwise closes the top three with 50 thousand BTC. Demand for Bitcoin remains high ahead of the upcoming halving, so support from institutional investors will continue for a long time.

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