Bitcoin price still managed to hold above the psychologically important $80,000 level ahead of the weekly trading close, but many traders believe the decline is not truly over.
At the time of writing, Bitcoin price is at $81,325, up 0.18% since it opened early Monday in Asian trading.
Although Bitcoin managed to surge to nearly $83,000 midweek, the gains failed to sustain.
After that, price action slowed down throughout the weekend but has yet to fall back below $80,000.
Crypto analysts see Bitcoin may need to retest the support level before continuing its rise higher.
Among the important levels being watched is the ‘Bull Market Support Band’, which is a combination of two moving averages that are currently just below $80,000.
This area is considered a strong support zone in a bull market.
According to Cryptic Trades analyst, as long as Bitcoin price remains above the support zone and does not fall below the $75,000 area, the chances of the price rising again are still high.
Another trader, Daan Crypto Trades, believes that Bitcoin's recent rise is not yet strong enough.
He wants to see the price really be able to hold on to the initial $80,000 area for one to two weeks before confirming a more stable bullish momentum.
At the same time, the market is now waiting for the US inflation data (CPI) for April, which will be announced next week.
This data is important because it can affect investor sentiment towards risky assets such as Bitcoin.
Famous trader Killa said that the market may have 'priced in' or taken into account the expectations of the CPI data in advance.
Although Bitcoin has risen after two previous CPI reports, he warned that large investors may start to reduce risk ahead of the data announcement.
According to him, if the current support zone fails to hold, the Bitcoin price has the potential to fall to around $74,000 before determining its next direction.
