Bitcoin price failed to hold onto its gains early in the week as the coin slipped back below the key $12,000 level. Despite a Monday push to highs near $12,500 BTC saw a correction for the remainder of the week and is trading in a small flag formation as it attempts to try the resistance levels again.
Bitcoin’s recent strength has been driven by wider gains in various commodities due to a move lower in the U.S. Dollar. The Greenback has been hit as investors started to question the growing Federal Reserve balance sheet and this stoked inflation fears. The dollar got some respite with a bounce in the second half of the week as FOMC minutes suggested a more dovish FED and the central bank also removed the possibility of yield curve control in the near-term.
The path for Bitcoin in the next week will be driven by the dollar trend again and the economic calendar has potential drivers in the form of U.S. consumer confidence, durable goods orders and final GDP numbers. The bigger event will be the FED’s annual Jackson Hole economic symposium, where the bank meets to discuss policy and economic events.
Bitcoin Daily Chart
Bitcoin sees resistance at the $12,000 and $14,000 levels. If it can clear the latter, it will open up a path to the all-time highs near $20,000.