Bitcoin (BTC) is bouncing back this week as a sudden surge challenges weekly highs.
In what should provide some desperately needed confidence to bulls, BTC/USD is back at weekly highs on May 30, gaining several percent overnight.
In contrast to recent weekly closes, the May 29 candle managed to limit the downside and reverse course immediately as the new week began.
Nonetheless, Bitcoin has now sealed nine red weekly candles in a row, something never seen before in its history.
Just how bearish is the largest cryptocurrency going into June? The macroenvironment remains troubled, while retail interest is nowhere to be seen, and calls for a deeper capitulation remain.
That said, should it continue its latest strength, Bitcoin still stands a chance of breaking out of its current trading corridor.
Cointelegraph takes a look at the factors primed to move the market in the coming days.
Can Bitcoin Avoid 10 Weeks Of Red?
Thanks to an unexpected but welcome U-turn overnight into May 30, Bitcoin is breaking with tradition this week.
Asian trading provided the backdrop to some solid gains, with both Japan’s Nikkei and Hong Kong’s Hang Seng index up over 2% at the time of writing. The trigger came from news that China is planning to relax some of its latest COVID-19 restrictions and open up the economy.
Bitcoin, nonetheless, outperformed equities prior to European trading getting underway.
After an initial read hourly candle following the weekly close, BTC/USD abruptly rose from $29,300 to current levels nearing $30,700, data from Cointelegraph Markets Pro and TradingView shows.
While caution remains thanks to the weekly close still being red, Bitcoin could end its nine-week losing streak this week as long as next week’s closing price is at least $29,500.
For some, the overnight action alone has been enough to get noticeably more positive on the near-term outlook.