Bitcoin (BTC) Price Volatility Slashes After Pullback From Highs Above $71,000

With multiple events line-up in the coming week, the markets could experience huge price variations which may even cause a huge price action

The price of Bitcoin has decreased significantly after pulling back from interim highs above $71,000 recently.

With several events lined up for the upcoming week, the markets could experience substantial price variations, potentially leading to significant price action.

In the past few days, spot Bitcoin ETFs have been accumulating rapidly, leading to new highs. Initially, the BTC price experienced a substantial upswing; however, the recent accumulation does not seem to have had a significant impact on the price. Nevertheless, the BTC price continues to fluctuate within the post-halving re-accumulation zone, awaiting the optimal time for a healthy breakout.

While the BTC price dropped by more than 4% following the NPF (Non-Farm Payroll) data, a key economic indicator, how will the token respond to the upcoming CPI, PPI & FOMC data?

Before examining the consequences, it is crucial to understand the current trade set-up of the BTC price rally. For nearly three months, the token has fluctuated between $60,000 and $70,000, and liquidations have been building up, indicating a clear imbalance for a retracement. Therefore, the high-time price action remains bullish, while the day’s trade may vary.

With the major events lined up in the coming week, the BTC price rally is displaying two scenarios,

It is important to note that both scenarios could end up in a bearish pullback, probably back below $70,000. Therefore, the next few days may be quite important for the Bitcoin (BTC) price rally, as any upswing beyond $71,500 may be another bull trap.