Bitcoin (BTC) attempted a modest rebound during the early U.S. trading session on Friday, but enthusiasm quickly faded. With the weekend approaching, are traders lightening their positions in anticipation?
The Weekend Blues
Recent trends suggest that traders might be feeling cautious. According to Standard Chartered’s Geoff Kendrick, Bitcoin has experienced a downturn for five consecutive weekends, measured from 5 PM ET on Friday to the same hour on Sunday. This unusual streak has raised eyebrows, especially in light of recent market volatility driven by factors such as the DeepSeek AI developments and tariff threats from former President Trump.
Kendrick emphasized that such behavior is atypical for Bitcoin, noting that the price action over weekends in 2024 has generally been subdued. He pointed out that significant market movements are more frequently observed on Mondays and Fridays, encouraging traders to keep a close eye on those days.
The Friday Fizzle
On Friday, Bitcoin initially surged by approximately 1.5%, climbing to $97,600 shortly after the release of January’s U.S. retail sales data. However, when the figures fell significantly short of economists’ expectations, hopes for potential Federal Reserve rate cuts in the first half of the year diminished, and Bitcoin’s price retreated to about $96,400—back to its pre-report levels.
Weekend Outlook
For those concerned about the upcoming weekend’s trading, it’s worth noting that the U.S. market will observe a holiday on Monday for Presidents’ Day. This three-day weekend could influence trading behaviors, as investors may choose to adjust their strategies ahead of the extended break.
In summary, with Bitcoin facing a challenging weekend and traders adopting a cautious stance, the next few days will be crucial in determining the cryptocurrency’s short-term trajectory.
