Bitcoin wants to end the trading week on a bullish note: what to expect over the weekend?

Over the past few days, there have been signals in the Bitcoin market indicating the formation of bearish sentiment. The price has stalled near $31k, and certain categories of investors have started moving BTC coins to exchanges to lock in current results. Statements by Federal Reserve Chairman Jerome Powell have also had a worrisome impact on the medium-term market outlook.

Despite the decline in market sentiment, investment activity in the Bitcoin market has resumed. The reason for this is strong macroeconomic news as well as an increase in trading volumes and overall activity in the Bitcoin market. If this trend continues, BTC has a chance to reach a new local price high.

The main reason for optimism was the publication of the final report on U.S. economic growth in the first quarter of 2023. According to the disclosed data, U.S. GDP grew by 2% in the first quarter of 2023 compared to the previous quarter. Positive news has revived global markets, allowing the price of Bitcoin to continue its upward movement.

Bitcoin's bullish potential could increase if the Personal Consumption Expenditures Index data meets investor expectations. If the indicator grows, it would signify an increase in spending and, consequently, inflation in the U.S. As a result, the U.S. PCE growth would be another signal for the implementation of a key rate hike in July at the Federal Reserve meeting.

The significance of this index should not be underestimated, especially considering that the head of the Federal Reserve has once again confirmed that the agency has not abandoned its policy of raising the key rate. Powell also made a worrisome statement that the largest U.S. banks are well-prepared and can withstand a severe recession.

The leading cryptocurrency has become the most profitable asset in the first half of 2023, surpassing all traditional assets—from stocks to precious metals. Despite this, Bitcoin's price high in the first half of the year stopped at the $31.5k mark, but there are strong reasons to believe that this will change soon.

There is a local decline in the cryptocurrency's hash rate by 3.26% to 362 EH/s, which usually indicates a drop in trading activity. Reports also say that the correlation between BTC and stock indices has reached a three-year low. This can be interpreted as good news, as Bitcoin has only increased its correlation with the stock market over the past year in anticipation of a correction.

Over the past 24 hours, Bitcoin made an upward spurt and tested the $31.2k level with daily trading volumes around $17 billion. It is worth noting that the asset approached the price high before Asian markets opened, which strengthened bearish positions, resulting in a price drop to $30.5k.

The nearest local support levels are at $29.8k and $29.6k. The price also tends to linger around the round level of $30k. Speaking of bullish targets, it would be $31k, and as long as Bitcoin holds the $30k level, the first bearish barrier will likely be surpassed. Buyers are very confidently defending support zones, but the same can be said for the bears.

This indicates that market sentiment is neutral, and any news events allow one of the investor categories to realize local price impulses. However, overall, the asset is moving within the consolidation corridor of $29.8k–$31.2k, testing the boundaries of this channel. In the coming days, no significant events or capital movements were observed that could influence the balance of power.

Technical metrics on the 1D timeframe are still in overbought territory. On one hand, this indicates the need for a local decline, but on the other hand, it suggests a consistently high bullish presence in the BTC market. However, overall, the indicators also point to a consolidation movement with a continuous decline in trading volumes.

The drop in trading activity over the weekend will allow one side to realize a price impulse. For the bulls, the nearest targets will be the levels of $31k–$31.5k. The bears will focus on the final break of the $29.8k–$30k range, where the key support is located for successful advancement towards $31k.