Bitcoin’s Struggles and Weekend Trends
In the latest trading session on Friday, Bitcoin (BTC) attempted a modest rally during the early hours of U.S. trading. However, this brief surge was quickly extinguished, raising questions about whether bulls are reducing their positions as the weekend approaches. Given the recent market behavior, they might have valid reasons for doing so.
Geoff Kendrick from Standard Chartered highlighted in his Friday commentary that Bitcoin’s price has now experienced a decline for five consecutive weekends. This measurement spans from 5 PM ET on Friday to the same time on Sunday, indicating a troubling trend for the cryptocurrency. Among the factors contributing to this decline were notable events such as the DeepSeek AI news and the ongoing threats of tariffs from former President Trump.
This is not a typical behavior for the market, Kendrick pointed out, emphasizing that weekend price movements for the entirety of 2024 have generally been subdued. Instead, significant price activity has been more pronounced on Mondays and Fridays.
Failed Rally on Friday
Reflecting on the price action from early Friday, Bitcoin initially rallied approximately 1.5%, hitting $97,600 almost instantaneously following the release of U.S. retail sales data for January. However, the reported figures missed economists’ estimates significantly, which sparked renewed optimism that the Federal Reserve might consider rate cuts in the first half of the year.
Despite this brief spike, Bitcoin’s price quickly reverted to around $96,400, nearly where it stood prior to the data release. For those apprehensive about the upcoming weekend, it’s worth noting that the U.S. will observe a holiday on Monday for Presidents’ Day, leading to an extended three-day break in trading activity.
