Bitcoin is trading in a tight range above $118,000 as trader awaits further catalysts to spark a move in the cryptocurrency space.
Digital assets responded positively to the recent plethora of trade agreements with Bitcoin knocking on the door of $120,000, but failing to break through the critical resistance level.
“Today’s muted price action comes amid growing anticipation ahead of a packed economic calendar this week, which is expected to play a pivotal role in shaping market direction over the coming days and weeks.” said Samer Hasn, Senior Market Analyst at XS.com.
“According to CoinGlass data, open interest in Bitcoin futures has declined by nearly $3 billion compared to last Saturday, despite the absence of significant liquidations on either side. Additionally, perpetual Bitcoin futures recorded their lowest trading volume of the month yesterday, reflecting a broader sense of caution among traders.
“This wait-and-see mood comes ahead of a series of key U.S. labor market indicators—including the all-important nonfarm payrolls report—along with the Fed’s preferred inflation gauge, GDP figures, and Consumer Sentiment readings. These will be released in parallel with the Federal Reserve’s interest rate decision, with markets expected to focus closely on Chair Jerome Powell’s accompanying remarks to gauge how policymakers are interpreting inflation risks in a higher-tariff environment.”
As alluded to by Hasn, Bitcoin could well liven up as Powell delivers his press conference tomorrow.