(Kitco News) – Little changed in the cryptocurrency market over the weekend as Bitcoin (Bitcoin) continued to trade below $63,000 on Monday, with analysts warning that a lack of positive catalysts could see the market fall again amid growing economic concerns.

Stocks had a volatile trading day, trending higher at market open but falling under pressure as the day progressed, with major indexes falling into the red around midday. The pullback came after the U.S. Treasury raised its federal debt estimate by $41 billion for the current quarter to $243 billion.

In response to this development, the 10-year Treasury yield rose again to 4.65%, after falling to 4.613% at the start of the trading day. Since then, it has trended downward and is trading at 4.607% at the time of writing.

At the close, the S&P, Dow and Nasdaq finished higher, up 0.32%, 0.38% and 0.35%, respectively.

Data provided by TradingView shows that Bitcoin (Bitcoin) broke below support at $63,600 in the early hours of Monday and fell to an afternoon low of $61,750 before bearish buyers arrived to halt the pullback.

BTC/USD Chart by TradingView

The relief rally saw Bitcoin briefly rise above $63,200, and at the time of writing, BTC was trading at $63,070, down 0.9% on the 24-hour chart.

A key week for economic data

“Bitcoin is currently exhibiting a downtrend with consistent lower highs and lower lows on an intraday chart, recovering from today’s low at $61,800,” said analysts at Secure Digital Markets. “It remains suppressed below the 20-day and 50-day moving averages, signaling bearish momentum.”

Uncertainty about the future of interest rates is the main source of volatility, they said.

“The combination of slow growth and persistent inflation has reduced the likelihood of Fed rate cuts, casting a shadow over risky assets,” the analysts wrote. “A rally above $67,500 would be necessary for bulls to regain dominance.

A reversal in ETF flows also pressured the price of Bitcoin, translating into weakness across the crypto market.

“Bitcoin ETFs saw significant outflows totaling $83.6 million last Friday, with Grayscale recording $82.4 million in outflows alone. Blackrock faced its third consecutive day with no influxes, painting a rather grim picture,” they noted. “The debut of Bitcoin ETFs in Hong Kong on April 30 attracted the attention of traders. However, enthusiasm has been dampened by news that mainland Chinese investors will be excluded from trading these ETFs.”

Looking at the broader markets, Secure Digital Markets said: “The market focus is on upcoming corporate earnings, significant labor data and a Federal Reserve meeting. Notably, Tesla shares rose 12% in pre-market trading after clearing a significant regulatory hurdle for its full implementation of autonomous driving in China.”

“This week’s earnings spotlight includes key reports from PayPal and Amazon on Tuesday, and Apple, Coinbase and Block on Thursday,” they noted. “Monetary policy will also capture market attention, with the Federal Reserve expected to maintain interest rates during Wednesday’s announcement. While no rate changes are anticipated, investors will closely follow Chairman Jerome Powell’s remarks at the subsequent press conference.”

“This anticipation builds leading up to Friday’s release of the April report on nonfarm payrolls, a critical indicator of labor market strength and a key factor in the Fed’s policy decisions and overall economic assessment.” , the analysts concluded.

According to For economist and crypto trader Milkybull Crypto, Bitcoin’s current weakness could potentially be “the last jolt before the rally to the top of the cycle.”

“If you look at the 2017 PA, when it broke a new record, there was a healthy, liquidity-capturing pullback before reaching the top of the cycle,” he said.

“The previous consolidation that started to build from December 2023 to February 2024 also reflected the current consolidation interval,” he added. “The manipulative strategy of MMs is to shake out degenerate STHs that are very sensitive to price correction, especially when it is below their cost base.”

“Liquidity capture zones: US$57 thousand to US$59 thousand. STH cost base: $59,788,” concluded Milkybull Crypto. “These are important zones to watch for a final shakeout.”

Altcoins fall as traders wait in the wings

Altcoins took a beating amid Bitcoin’s weakness, with all but ten tokens in the top 200 posting losses on Monday.

Daily cryptocurrency market performance. Source: Coin360

Amp (AMP) was the highlight with an 18.75% gain, followed by a 6.4% increase for BinaryX (BNX) and a 5.7% gain for Helium (HNT).

The total cryptocurrency market value is now $2.32 trillion and Bitcoin’s dominance rate is 53.3%.

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