Bitcoin started the week strong, climbing above $63,000. However, analysts at Bitfinex caution that the market may face a retrace as the week progresses. BTC is up 5% over the past 24 hours and 13% over the past week. These gains have been influenced by several factors, including the end of the German government’s BTC sell-off and positive sentiment around former U.S President Donald Trump. Over the weekend, Bitcoin’s price broke above its 125-day range low of around $60,200 after hitting lows of $53,500 earlier in the week.

While the bounce could extend, Bitfinex analysts suggest that traders might need to wait for more decisive moves. Sharing their insights in this week’s issue of Bitfinex Alpha, the analysts noted that Bitcoin’s recent rebound above the $60k level could mirror previous weeks, where a retracement followed a weekend mini-rally, proving short-lived by mid-week.

News Agenda Driving Market, Not Fundamentals

The Bitcoin Fear & Greed Index has shifted from fear to neutral as sentiment improves following the recent sell-off. Supply concerns have seemingly faded, and the market has readjusted to new developments since Saturday.

This shift in sentiment highlights the market’s capacity to quickly integrate new information and adjust expectations accordingly. However, it is still important to focus on the market’s reaction over the first two trading days of the week.

Apart from the area around $60,200 being key as a potential support level, it could also flip into a resistance zone. If bulls resolve higher decisively, BTC could retest recent resistance levels near the $70k level. A dip, however, would welcome new downside pressure, particularly if selling re-emerges.

Weekend Relief or New Sustained Rally?

According to Bitfinex analysts, weekends have provided relief for bulls over the past couple of months. However, bears have managed to resurface around mid-week for the past eight weeks, going back to June 8, when prices last hovered around $70,000. The “news agenda” may therefore dictate the market movement in the short term. But traders might want to factor in the potential for fresh hurdles, with Mt. Gox creditors being one to watch.

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