Bitcoin Nears Two-Week High as Traders Warn of Potential Volatility

Bitcoin's price action is nearing its two-week high as traders gear up for what could be a volatile Monday. The crypto market has seen 'terrible' Mondays in the past, with one trader warning that seven out of the last seven have been particularly weak.

Data from TradingView shows that BTC/USD is focusing on $62,700, where a key long-term trend line and the 200-week simple moving average (SMA) meet. This could be a critical support level for Bitcoin's price, as it attempts to hold above its lowest levels in two weeks.

Despite this potential weakness, some analysts are detecting 'greener shoots' on the horizon. The US spot Bitcoin exchange-traded funds have seen renewed net inflows, and the latest data from CME Group's FedWatch Tool suggests a near-80% chance of the Federal Reserve holding interest rates at current levels at its July 29 meeting.

As one trader noted, 'the clearest dovish tell was a 2% pop in gold', which could be a sign that investors are becoming more risk-averse. However, this also signals a softening in hawkish expectations of interest rate hikes, which could have a positive impact on the crypto market.