Bitcoin enjoys modest intraday gains but lacks follow-through demand

Bitcoin remains rangebound as investors deal with increasing geopolitical concerns and an uncertain Federal Reserve outlook. Despite the recent rebound, there is a risk that if the crypto pair does not maintain its upward momentum, it may be time to take profits on long positions again.

Risk assets, including stocks and cryptocurrencies, experienced a modest rebound early Monday following a few days of decline. Bitcoin climbed back above $67,500 after increasing more than 3% from the session's start. It had briefly dipped below $65,000 earlier on Sunday before its rise, which resulted in significant liquidations of leveraged long and short positions.

Crucial Week Ahead

Despite the recovery, Bitcoin remains rangebound as investors deal with increasing geopolitical concerns and an uncertain Federal Reserve outlook. The Middle East conflict, now in its sixth week without a conclusion, continues to have an impact on market mood. Both bulls and bears have been cautious, resulting in lower market participation.

Market focus is on Federal Reserve Chair Jerome Powell’s upcoming remarks, which are expected to provide insights into inflation, interest rates, and the broader economic outlook. Fed Powell is scheduled to participate in a moderated discussion at Harvard University on Monday. Powell maintained interest rates steady during the March FOMC meeting rate cut announcement on March 18, but he warned of surging inflation ahead. Other key factors to watch include ongoing geopolitical developments, US dollar movements, comments from other Fed officials, and the upcoming US employment report—all likely to impact Bitcoin’s price action.

BTCUSD Technical Outlook

A look at the daily chart shows the rebound also coincides with some decent support from a technical perspective. As of this writing, Bitcoin trades above $67,700. Despite the recent rebound, there is a risk that if the crypto pair does not maintain its upward momentum, it may be time to take profits on long positions again. Consequently, the cryptocurrency could revisit the $65,000 support level, followed by $62,600 and $62,000, if the bulls fail to sustain the rebound. The area between $62,000 and $60,000 is likely to attract significant market interest, so traders should monitor it closely.

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On the flip side, a sustained recovery could test the psychological resistance at $70,000, followed by $72,000–72,500. A decisive break and close above $75,000 would be required to confirm a strong bullish move.

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