The Bitcoin price is about to have a big week. The BTC is trading at $60,550, which is slightly below the all-time high of close to $62,000. This brings its total market cap to more than $1.13 trillion. Here are the reasons why this could be a big week for Bitcoin and other cryptocurrencies.
Coinbase listing: Coinbase, the biggest cryptocurrency exchange in the United States will go public this week. The firm has opted for a direct listing instead of an Initial Public Offering (IPO) or a merger with a SPAC. By listing directly, the company will not offer new shares, which means that there will be no lock-up period. This allows the existing investors to sell their shares immediately. Other popular companies that have used the direct listing route are Asana and Spotify.
Recent data by Coinbase showed that its business is on an upward trajectory. It has continued to add millions of customers who are trading digital currencies worth billions of dollars. Therefore, if the listing is successful, we could see a positive performance by Bitcoin price.
US CPI data: The US will publish the latest inflation numbers today. Because of the higher oil prices, ongoing reopening, and the recent $1.9 trillion stimulus package, data will show that inflation soared. Precisely, analysts expect the data to show that consumer prices surged by more than 2.5% in March. A higher inflation could affect Bitcoin prices because they could send signals that the Fed will hike rates earlier than expected. However, this inflation could be temporary.
Bitcoin price technical pattern
The third reason why this will be an important week for BTC prices is technicals. Last week, I predicted that the Bitcoin price would soar to $65,000 during the weekend. Clearly this did not happen as the price remained slightly below the all-time high.
Today, the case for a bullish breakout is strong as the currency has formed an ascending triangle pattern on the four-hour chart. Therefore, with the triangle nearing its confluence zone, there is a probability that it will break out higher. Any moves above $62,000 will see the cryptocurrency surge to $65,000. A move below $59,000 will invalidate this trend.