Bitcoin
Bitcoin Price Drops Below $29K Amid a Surge in Profit-Taking
Bitcoin price has been in consolidation mode for the past few weeks amid the continuation of the profit-taking trajectory that has been gathering pace in recent weeks. The digital asset is down by more than 2% in the past week and 5% in the past month. Bitcoin’s total market cap has also crashed over the last day, while the total volume of the asset traded over the same period jumped higher.
Fundamentals
Bitcoin, the largest cryptocurrency by market capitalization, has been under intense pressure for the past few weeks amid increased volatility in the cryptocurrency market. The crypto market has been on a downward trajectory for the past few weeks, characterized by significant outflows from digital currencies. According to Coinmarketcap, the global crypto market cap has plunged over the past few days to $1.15 trillion, while the total crypto market volume edged higher.
The recent trend in the crypto market has been against the backdrop of regulatory concerns in the industry. Coinbase, the largest cryptocurrency exchange in the United States by trading volume, has been battling a lawsuit against the US Securities and Exchange Commission for the past two months. Earlier in June, the SEC sued Coinbase, alleging the violation of federal security laws by operating as an unregistered exchange. Coinbase asked a judge to dismiss the SEC lawsuit against it, alleging the Wall Street regulator stepped out of its jurisdiction in suing the cryptocurrency exchange.
The Crypto Fear and Greed Index, which is used to measure the key emotions driving the cryptocurrency market, has slipped to a neutral level of 50. A move below this level will indicate that the market is in extreme fear, prompting investors to go on a selling spree.
The US dollar rose against major currencies on Monday ahead of the key inflation data slated for Thursday. The US dollar index, which measures the performance of the greenback against other currencies, was a little unchanged at 102.128 following its drop to a one-week low on Friday. Analysts expect core inflation of 4.7% on an annual basis for July, down from 4.8% in June.
Bitcoin Price Analysis
The daily chart shows that the Bitcoin price has been range-bound for the past few days, trading between the tight range of $29,588.85 and $29,000. The digital currency has failed to start a fresh rally above the crucial level of $30,000 despite the few attempts to move above this level.
Bitcoin remains below and above the 50-day and 200-day exponential moving averages, respectively. Its Relative Strength Index (RSI) has moved below the signal line and the neutral level, indicating an increase in selling pressure. The Moving Average Convergence Divergence (MACD) indicator, as well as the Momentum indicator, is in red.
Therefore, the Bitcoin price is likely to pull back further in the coming days amid market volatility and global economic uncertainty. As such, the next support levels to watch will be $28,345 and $27,000. However, a flip above the $30,000 threshold will invalidate my bearish thesis.
BTC Price Chart
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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