US crypto executive order looms — 5 things to watch in Bitcoin this

Bitcoin (BTC) starts a new week with a bang — but not in the right direction for bulls.

A promising weekend nonetheless saw BTC/USD attract warnings over spurious “out of hours” price moves, and these ultimately proved timely as the weekly close sent the pair down over $1,000.

At $37,900, even that close was not enough to satisfy analysts’ demands, and the all-too-familiar rangebound behavior Bitcoin has exhibited throughout January thus continues.

The question for many, then, is what will change the status quo. 

Amid a lack of any genuine spot market recovery despite solid on-chain data, it may be an external trigger that ends up responsible for a shake-up. The United States’ executive order on cryptocurrency regulation is due at some point in February, for example, while exact timing is unknown.

The Federal Reserve is a further area of interest for analysts, as any cues on inflation, interest rate hikes or asset purchase tapering could significantly impact traditional markets, to which Bitcoin and altcoins remain closely correlated.

With frustrating times characterizing the first month of 2022, Cointelegraph takes a look at the state of the market this week.

We’ve identified five things worth considering when working out Bitcoin’s next moves.

Bears “hammer” down on BTC weekly close 

Even the meagre gains into the weekly close were a short-lived reason to celebrate for Bitcoin bulls this Sunday.

Midnight UTC saw an immediate rejection candle sweep in, with BTC/USD diving to $36,650 on Bitstamp.

As noted by trader, analyst and podcast host Scott Melker, strong volume accompanied the move, underscoring the unreliable nature of weekend price action when it comes to building a position.

As several other sources said last week, Melker reiterated that $39,600 needs to be reclaimed for a more bullish outlook to prevail.

$BTC Weekly

Pretty hammer candle (or high wave spinning top, choose).

Strong volume, long wick into demand.

Not really bullish until $39,600.

Have not had consecutive green wks in months, need confirmation. 2 weeks ago was a “bullish candle” as well, didn’t work out. pic.twitter.com/HlI8XI6RO2

— The Wolf Of All Streets (@scottmelker) January 31, 2022

Just as uninspired by the weekly candle was fellow trader and analyst Rekt Capital, who in a fresh Twitter update said that BTC “continues to struggle with $38,500 resistance.”

“This is the area BTC needs to Weekly candle Close above to ensure upside beyond ~$39,000,” he added.

With a disappointing performance behind it, Bitcoin is thus back in the same old range — one which some warn could yet result in a retest of lower levels.

“Personally looking forward to any opps to compound if we trade this 29-40k range for long,” popular trader Pentoshi confirmed.

The trip to highs around $38,600 meanwhile succeeded in raising previously negative funding rates on derivatives as sentiment swiftly changed from expecting further downside to expecting a bullish continuation.

The reversal, however, sent funding…