itcoin faced selling pressure this week, dipping below the key $60,000 level amid historically low prices in the 33rd week of the year.
The top cryptocurrency fell 4.85% over the last 24 hours to trade around $58,267. Data shows Bitcoin has posted average losses of 1% in the 33rd week over the past decade, with a few exceptions.
Back in 2013, Bitcoin saw strong 13.96% gains this week. But recent years tell a different story - weeks 31 and 32 this year brought 15% and 38% drops respectively from all-time highs.
Ethereum Down Too
The second-largest cryptocurrency, Ethereum, dropped 3.81% to $2,590.20 as the broader crypto market sold off. Ethereum has seen an average of 5% losses in the 33rd week since 2016.
Some analysts pointed to upcoming US inflation data as a potential catalyst. The July consumer price index reading lands this week and hopes are a slight cooling of inflation could buoy stocks and digital assets.
Most companies have now reported Q2 earnings as well, giving traders more info to digest after a noisy quarter.
Bitcoin Faces Downside Risks
Despite bouncing off lows, Bitcoin faces risks to the downside according to some. The MVRV Z-Score metric shows the asset trading at "undervalued" levels right now relative to its fair value.
Other data tells a similar story - the Spent Output Profit Ratio indicates plenty of volatility in Bitcoin's post-halving price action this cycle. And the changing age bands of the Bitcoin supply signaled a drop in liquidity lately.
So the coast isn't exactly clear for Bitcoin bulls yet. $60K remains an important support level after acting as resistance on multiple occasions earlier in the year. A decisive break below that could see lower supports come into play around $53K-$55K.
But any bullish reaction to the inflation data could provide upside fuel if traders get confidence back. For now, the market remains in wait-and-see mode heading into a historically rocky week.
