A four-day winning streak brought the Bitcoin (BTC) prices closer to testing its l-day exponential moving average (~$35,115) as resistance.

The moving ridge, which was instrumental in strengthening Bitcoin'south bullish bias across 2022 as back up, flipped to go a resistance during the May 2022 sell-off. In doing so, it capped the cryptocurrency from extending its upside rebound moves many times.

For case, Bitcoin's drop from $56,900 to $30,000 in mid-May prompted bulls to buy the dip. Every bit a upshot, the cryptocurrency shot back above $40,000 but found its bullish momentum exhausting correct almost the 50-mean solar day EMA. The scenario repeated multiple times after May'southward retracement effort, as shown in the chart below.

Bitcoin's 50-day EMA equally resistance. Source: TradingView.com

Rekt Capital, a well-known cryptocurrency analyst, turned to a 2022 fractal to determine potential outcomes from the ongoing Bitcoin toll activeness.

The trader noted that Bitcoin price tested the 50-24-hour interval EMA equally resistance in October last year when the BTC/USD pair was trading shy of $10,000. But after breaking the wave to the upside, BTC/USD eventually established a record high near $65,000.

Bitcoin 50-day EMA fractals. Source: Rekt Capital, TradingView.com

"This [was] when BTC formed an well-nigh identical fractal of Bitcoin'south electric current price action," the profile noted, hinting that the fractal might echo as Bitcoin tests the aforementioned resistance level after nine months.

This week

Bitcoin closed in to repossess 50-twenty-four hours EMA after painting a rosy calendar week.

The benchmark cryptocurrency was off to end the seven-day session up past more than 8%. A bulk of its gains came after The B-Word briefing that features a trio of Wall Street biggies— Tesla's CEO Elon Musk, Twitter'southward CEO Jack Dorsey, and Ark Invest'south founder Cathie Woods. The executives took turns to speak favorably about Bitcoin engineering and shared their thoughts about the futurity.

Musk, whose comments on cryptocurrencies are notorious for moving markets, revealed that his private rocket company SpaceX holds Bitcoin. He also added that Tesla would resume its Bitcoin payment option once its miners switch to more renewable energy sources to operate its blockchain.

Dollar, stocks and the Fed

Bitcoin besides appeared to have capitalized on risk-on flows led past a inclement U.Due south. dollar index and a rising Wall Street.

Bitcoin versus leading Wall Street indexes and the United states dollar index. Source: TradingView.com

Adjacent week appears busy with high-profile data and policy-statement releases.

On Tuesday, the U.S. Conference Board will publish the Consumer Conviction Index for July. In addition, a preliminary Consumer Sentiment Index report from the Academy of Michigan shows a negative change in consumer sentiment. The report also professes fears of a precipitous rise in inflation.

As of late, inflationary pressures have additional the dollar's appeal amongst investors. This has sapped Bitcoin'southward interim bullish outlook despite the cryptocurrency's popular safe-haven narrative.

On Wednesday, the Federal Open Marketplace Committee (FOMC) will denote its decision on involvement rates and publish its monetary policy statement.

Jerome Powell, the chairman of the Federal Reserve, said in congressional testimony earlier this month that they are however away from tapering their $120B a calendar month bail-buying plan. He commented that a conclusion on scaling back the Fed's asset purchases would come only upon seeing a substantial improvement in the labor market place.

However, the U.Southward. fundamental bank officials await to discuss whether they could beginning tapering past the end of this yr. In detail, a hawkish shift in the Fed policy in June was partially responsible for pushing Bitcoin prices lower and the dollar higher. Therefore, Bitcoin bulls would expect to remain cautious about the potential outcome of the FOMC meeting.

Related: Bitcoin bull outlines 7 steps to more than fiscal stimulus and higher BTC prices

On the other mitt, if the Fed decides to sleep on the tapering talk, given the rising economic uncertainties led by the fast-spreading Delta variant of the Covid-19, it could hamper the dollar's appeal and, in plough, provide a certain degree of upside boost to Bitcoin.

On Thursday, the U.Southward.  Agency of Economic Assay will release its gross domestic product's growth judge for the second quarter. Economists wait it to amend to vii.9% year-over-year from 6.4%.

Finally, the US economy docket will feature the Personal Consumption Expenditures (PCE), the Fed's preferred metric to measure inflation, on Fri; it is expected to rise iii.7% in July from 3.four% in June.

The views and opinions expressed hither are solely those of the author and practice non necessarily reflect the views of Cointelegraph.com. Every investment and trading movement involves take chances, you should deport your own research when making a determination.